Information required on a loan application - Tennessee Family Mortgage Group

What Information Will be Needed for the Application
(and how it's kept private)

Anything you submit over our website is 100 percent, fully secure. And we never, ever share it with anyone except by permission - that is, if you're giving us information you want us to use to get you the best loan, we use that information to tell mortgage lenders about you and convince them to loan you money. In turn, those mortgage lenders are bound by federal law to keep your information secure, as are we.

It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. Nowadays, things move faster. "Alternate documentation" has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.

The following page lists the items you may need for the processing of your home loan. Don't panic - you will not need all of the items and usually only two to four from the list below. We just want you to be aware of the items that may be asked for - don't start getting things together until you talk with you loan officer who will know exactly what you need. Items will differ according to whether your loan is a conforming or a non-conforming loan. Additionally, the documentation required for a refinance is generally much less than for a purchase.

Income Items

W2 forms for the last two years
Most recent pay stubs covering a 30 day period
Federal tax returns (1040s) for the last two years, if:
- you are self-employed
- earn regular income from capital gains
- earn sizable interest income, etc.
- earn more than 25% of your income from commissions or bonuses
- own rental property
- or are in a career where you are likely to take non-reimbursed business expenses).
Year-to-Date Profit and Loss Statement (for self employed)
Corporate or Partnership tax returns (if you own more than 25% of the business)
If you are self employed, and qualify for a stated income loan, you will not need any of the above
Pension Award letter (for retired individuals)

Social Security Award letters (for those on Social Security)

Asset Items

Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don't think them important.
Statements for two months on all stocks, mutual funds, bonds, etcetera
Copy of latest 401K statement (or other retirement assets because they can count as reserves)
Explanations for any large deposits and source of those funds
Copy of HUD1 Settlement Statement on recent sales of homes
Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
Gift letter (if some of the funds come as a gift from a family member - the lender will supply a blank form)
Gifts can also require:
- Verification of donors ability to make the gift (bank statement)
- Copy of the check used to make the gift
- Copy of the deposit receipt showing the funds deposited into bank account or escrow
Note: many get their statements of various kinds over the internet and these are not always acceptable to lenders, especially when the printed version does not contain the borrower's name, account number, and the name of the institution.

Credit Items

Landlords name, address, and phone number (if you rent - for verification of rental)
Explanations for any of the following items which may appear on your credit report:
- Late payments
- Credit inquiries in the last 90 days
- Charge-offs
- CollectionS
- Judgments
- Liens

Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Other

Copy of purchase agreement (if you have already made an offer)
To document receipt of child support (if you desire to show it as income)
- Copy of Divorce Settlement (to show the amount)

Copies of twelve months canceled checks to document actual receipt of funds

Copy of social security Card (or other documentation of social security number)

Copy of Drivers license

Copy of your most recent monthly mortgage bill
The following cannot hurt to have ready, but are not as necessary as they once were:
- Copy of Note on existing loan
- Copy of HUD1 Settlement Statement on existing loan

I'm ready to go to the Loan Application