Important Paperwork Required For Mortgage Process

This BLOG On Important Paperwork Required For Mortgage Process Was UPDATED On June 27th, 2018

There are certain paperwork required for mortgage process.

• The mortgage process starts when borrowers apply for a mortgage loan
• Mortgage applicants can click APPLY NOW and complete the 4 page mortgage application which is also known as the 1003
• Once completing online mortgage loan application, a loan officer will get notified via email alert
• Loan officer will contact applicant verify the information
• Credit will be pulled and mortgage loan application will be submitted to our automated underwriting system for an automated approval
• Once we get an approve/eligible per DU FINDINGS , file will be moved to processing and underwriting
• Once borrower meets all mortgage guidelines, a solid pre-approval letter will be issued
• Armed with a solid pre-approval letter, the home buyer can then go out and shop for a home of their choice
• Once they find the home they like, the home buyers will enter into a real estate purchase contract and this is where the mortgage process begins

Mortgage Application Process And Paperwork Required For Mortgage Process

The mortgage application starts when the mortgage loan originator gets the signed mortgage loan application from the borrower and co-borrower, if there is a co-borrower and/or non-occupant co-borrowers.

• The mortgage loan originator will need a list of documents from the mortgage loan applicant to start the mortgage loan process

Here is the list of documents that will be required by the mortgage loan applicant and/or applicants

• The mortgage loan borrower will need to provide 60 days of the most recent bank statements
• The 2 months bank statements will need to be deposit accounts that will show the down payment
• Down payments needs to be seasoned for two months
• Or if it is not then documentation is required as of where borrower got the large or irregular deposits
• It can be from a sale of a car or other high ticket items
• If this is the case, the copy of the deposit slip, copy of check, and bill of sale will be required to document and source the deposit
• Bank statements are one of the most important paperwork required for mortgage process
• We will need all pages of the bank statements, even blank pages
• Bank printouts can be used in lieu of actual bank statements, however, it needs to be signed, dated, and stamped by the bank teller

How Are Debts Analyzed By Mortgage Underwriters

Other paperwork required for mortgage process include tax returns. Gustan Cho Associates offers W-2 Income Only Mortgage loans for W2 wage earners. Cannot have 1099 or rental properties.

• All mortgage loan applicants needs to provide two years of income tax returns if automated underwriting systems conditions it
• If the mortgage loan applicant is self employed, then two years of business and personal returns needs to be provided as well as year to date profit and loss statement as well as the current balance sheet
• Page two of all tax returns needs to be signed by the mortgage loan borrower and/or tax preparer if they were prepared by a certified public accountant or tax preparer
• Current balance sheet for self-employed borrowers

Other Documents Required To Process Mortgage 

• “Mortgage”, “Note”, and “Riders” for existing mortgages on homes from homeowners applying for a refinance mortgage
• Some other paperwork required for mortgage process includes the following:
  • paycheck stubs
  • recent pay check stubs covering the past 30 days of employment
  • normally two pay check stubs are required
• On refinance transactions, other paperwork required for mortgage process includes insurance documentation
• We will need a copy of the homeowners insurance declaration page and contact information of the homeowners insurance agent
• Mortgage loan applicant’s who had a prior divorce, they need to provide the divorce decree of their divorce as well as child support and/or alimony agreements and documentation
• If mortgage loan applicant has a IRA, 401K, Profit Sharing account, or Pension Accounts, they need to provide the statements
• If the mortgage loan applicant has securities and/or other investment accounts, they need to provide all statements with regards of such accounts
• Credit card information is required in order to order appraisal
• The appraisal costs is the only closing costs outside closing that needs to be paid
• The mortgage loan borrower’s driver’s license and social security card needs to be provided as well for all co-borrowers
• Borrowers needs to provide the copy of the real estate purchase contract with all the addendums to the purchase contract
• If the home buyer is purchasing a condominium or town home, then the contact information of the property homeowners association needs to be provided
• If mortgage loan applicant is a social security income recipient, then a copy of the awards letter from the Social Security Administration is required
• If the mortgage loan applicant are renting and need to provide verification of rent, then 12 months canceled checks needs to be provided along with copy of lease and/or rental agreement
• If the rental payments are being automatically withdrawn from renters bank account and deposited to landlord account, then 12 months of bank statements showing the transfer needs to be provided
• Those paying with money orders and/or cashiers checks, they need to provide 12 months copies of cashiers check and/or money order
• Verification of Employment is required
• Borrower needs to provide contact information of human resources representative and contact information
• If the subject property is part of a homeowners association, need to provide contact for the homeowners association property manager
• VA mortgage loan borrowers need to provide Certificate of Eligibility ( COE ) and DD214