It is extremely important that when you receive your pre-approval letter, due diligence has been done. Part of the underwriting process, and a large part at that, is examining your income and documenting the most recent 2 years of employment in order to prove you have the ability to repay the loan. Some people’s pay is simple and straight forward, some people’s are not so it is important for your loan officer to review all of your tax documentation from your W2s and pay stubs, to your tax returns (all schedules!) If you are paid a salary, it is viewed differently than commissioned income, bonus income, etc and you want to ensure that the income being used to calculate your pre-approval is accurate and verified.
Below is a list of the items you can expect to provide:
- Most recent pay stubs (one month’s worth, consecutive)
- Federal tax returns and all schedules
- Bank statements for all accounts for the last three consecutive months (savings, checking, passbook, stocks, 401K, IRA, mutual funds, etc.)
- Employer’s names, addresses, and phone numbers for the last two years
- Book and page number and deed of subject property
- Purchase and sales agreement on the house you are buying
- Purchase and sales agreement on the house you are selling
- If self employed, a year to date profit and loss statement
- For a corporation/partnership, the last two corporation/partnership tax returns
- Loan information on any other real estate owned (mortgages, copy of lease, copy of insurance bill, most recent tax bill)
- For Virginia: DD214 or VA certificate
- If divorced, separation agreement and one page NISI
- If bankruptcy has been declared, all bankruptcy documents
- If building, a copy of the plans and specs for appraisal
In addition to this, we may be required to have your employer supply a verification of employment form, itemizing pay. Also, remember to bring your application fee. Single family fee: $450. Two family fee: $575. Pre-approval: $0. Your application fee will be credited back at closing.
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