To determine whether a borrower is credit worthy, lenders require borrowers to provide past and present financial documentation. The format of the documentation being submitted must be exact, providing evidence of the ability to repay your loan. Here are some things to know when preparing documentation to for a home loan.
Core Documents for Preapproval Letter (additional documents may be required for self-employed or retired borrowers).
Borrowers must provide some initial information, to prove assets, liabilities, and income. When documents have been verified, a preapproval letter can be sent to the borrower, and realtor.
These documents are:
1 Valid Identification
2 Most Recent Bank Statements (use statements from accounts that are involved in loan process)
2 Most Recent Tax Returns
2 Most Recent W2 Forms
The last 30 days of paystubs from current employer
Post Loan Submission Documentation
Once your loan has been submitted to underwriting, more documentation may be necessary to satisfy their loan conditions. In this process, it is important for borrowers to maintain their finances, refrain from establishing new credit, and keep all existing revolving accounts (an account in which a credit line was established) in good standing. Borrowers should try not to exceed 33% of the credit limit of any account.
When documents are sent electronically, it is important to upload to our secure website rather than emailing documents. Options to upload files electronically are available on in the application portal you used to complete the application. Our goal is to ensure that your personal information is safe, and remains safe while in loan process, as well as after closing.
Print to PDF
When submitting documents, borrowers must submit them in PDF format. One way to convert a document to PDF format, is to right click on the webpage, and click print. Once you click print, change the destination printer to Print to PDF. It will then give you the option of naming that file and storing it into your device. Once that document is store, locate it, and upload it to the secure website.
Lenders usually require updates on paystubs, as well as bank statements while in underwriting. Keep these documents handy, ensuring that there is no significant change in employment status, or bank reserve requirements.
The lender will require a trail of documentation for large transfers and deposits from the time of the loan application, until the loan is closed. It is important for the borrower to keep transaction details for all large transfers. If there was a check deposit, make a copy of the check. If transferring funds from a retirement fund, provide a breakdown of the transaction, and fees.
If uploading pictures, please make sure the information is legible. Make sure that the entire page is visible. All pages must be included.
Screenshots are not acceptable format for documentation. Use Print to PDF instead of screenshots. Lenders will also require that the web address shows in the footer or header as well to verify the screenshots authenticity.
Documents can be affirmed through electronic signature. When corresponding to documents requiring electronic signature, please review and sign all documents. The application will let you know it is complete and send confirmation.
Submitting documentation can be a scrutinous process, but time in underwriting can be saved if these you submit the correct documents, in the correct format. Less time in underwriting allows for earlier closing and will help you get into the home of your dreams much faster.