 | Gary Donovan has over 35 years of banking experience, including over 23 years in commercial and mortgage lending. He has been licensed in the fields of securities, commodities, insurance and has held a real estate license since 1984. He managed land for the KU Endowment, KSU Endowment, Friends University and other institutions. He has earned B.S. degrees from both KSU and WSU. BNC National Bank is one of the top 5 residential mortgage lenders in the Wichita market. For a comprehensive residential mortgage officer and fast turn times, contact Mr. Donovan at (316)854-3634, or by cell phone at (316)640-4213. His web site is www.garysmortgage.com and eMail his is gdonovan@bncnationalbank.com. |
Real Estate
2013-03-25 13:41:18
What documents are needed to get a mortgage loan on my home?
Q-Can you provide a list of the documents and information I will need to give to my lender to get a mortgage loan on a home?
A-Here is a list of Items Generally Needed to Process a Mortgage Loan. Although not all of them may apply to you, lenders will generally require the following information:
1. Copies of 2 consecutive months of your most recent pay stubs.
2. Copies of your last 2 years of W2s and/or 1099s.
3. Copies of your most recent 2 years’ tax returns (2011 and 2012). Please include all pages. If self employed you will need all business returns including all schedules for the business. Also, your state taxes return if you have received or are expecting a refund.
4. If you receive Social Security, Disability or Pension earnings, please provide a current Award Letter along with 2 years of 1099s.
5. Copies of all pages of your most recent 2 consecutive months’ bank statements (savings, checking, Money market, CD’s, & IRA’s). Usually lenders cannot accept computer printouts that do not contain: Account number, your name and the Bank name.
a. If you have any over-drafts on the bank statements, lenders will need a written explanation for them. These may cause delay or denial of your loan. Each statement needs to reflect a 30 day statement time line with no gaps in dates.
b. Copies of all paper checks that are deposited into your bank account, or if cash provide a copy of the deposit slip. Lenders will require explanations of source of funds for any deposits other than your direct deposit payroll earnings. Any deposit other than direct deposit payroll will have to be verified and acceptable. PLEASE NOTE: You will not be able to complete your loan request until all funds are verified by either direct deposit information or photo copy of checks or cash deposit slips.
c. If there are any transfers into your bank accounts from another account, either yours or another person’s you will need a copy of that statement as well.
d. Your lender will probably require that any joint account holder that is not also applying for the loan will need to state in writing that he/she give you 100% access to the funds in your joint bank account. A hand written letter signed by this person should be acceptable. Include the bank account number in the contents of the letter.
e. Make sure your name, company name of statement and account numbers are on all documents. If the document is 1 of 5 pages please include ALL pages (even blank backsides if needed). Sometimes when you go online it does not list the entire information name, account numbers, etc.
f. DO NOT deposit any gift funds into your bank account prior to meeting your loan originator. Paper trail and gift fund documentation will need to be verified to meet loan guidelines.
6. Copy of most current retirement, 401(k) and investment account statements reflecting at least a 30 day line item history. Include the terms & conditions on how you can withdrawa funds from these accounts.
7. Legible copy of valid Driver’s License.
8. Insurance agent’s name and phone number for loan on current home.
9. Voided check for the appraisal fee or credit card information for the monies to be debited. Please be aware that additional fees for re-inspection appraisals may be charged.
10. A copy of the bank statement showing clearing for the earnest money as well as the appraisal money will be required prior to closing.
11. Do NOT open any new credit accounts or add to the balances of your current accounts. This can reduce the amount of your loan approval.
12. Remember that if you change current employment, or are on a leave of absence, it can delay or cancel the loan. Verification of employment will be re-verified on the day of closing.
13. If divorced, you will need a complete copy of your divorce decree, child support order/agreement and separation agreement along with verification of support payment (Child support & Alimony).
14. Has your ex-spouse missed alimony or child support payments in the last 12 months under the divorce decree? If so you will need to supply details.
15. If you ever filed for bankruptcy you will need a copy of all bankruptcy papers and discharge of debtor pages for Chapter 7 and/or 13.
16. If you own more than one home you will need the mortgage statement on all properties, homeowner’s insurance information, county tax information, and any current rental agreements.
17. Please obtain a Home Owners insurance quote and the amount of real estate taxes at your earliest convenience if purchasing a specific home. The lender will need the name of the insurance agent and their phone numbers.
18. If applying for VA loan, please provide your DD-214.
19. If you own rental properties, please provide all current insurance agent names and phone number.
20. If you own rental properties, please provide copies of current leases as they must be rented to use the income of past tax returns.
21. If you have recently sold or purchased property within the year that is not reported on your most current tax return that you have provided, please provide the HUD settlement statement.
22. If you are self employed, please explain decreasing income from one year to another, if applicable.
23. Please explain any job (employment) gaps over 30 days of your 2 year history, if applicable
24. If applying for a USDA Rural development loan, please provide household income of all people living in home- even if they are not on the note or mortgage. All income will be used to calculate that the statutory limit per county has not been exceeded.
Your diligent effort in collecting the above required information will make the loan approval process go faster and smoother.
