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,
the interest is often in speed and getting answers quickly, so "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 is required for most standardized loans as part of
alternate documentation processing. Items may differ according to
whether your loan is a confoming (Fannie Mae or Freddie Mac), non-conforming
(jumbo) loan, government loan, or a portfolio loan.
Verifications are still mailed out, but usually as part of quality
control procedures.
These are the things you need to supply to your lender to get a
quick approval using alternate documentation:
Income Item
» W2 forms for
the last two years
» Paystubs covering a 30 day period
» Federal tax returns (1040’s) for the last
two years, if: |
| |
» you are self-employed
» 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 applicable)
» 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.
» Statements for two months on all stocks,
mutual funds, bonds, etcetera
» Copy of latest 401K
statement (or other retirement assets)
» 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)
» Gifts can also require: |
| |
» Verification of donor’s
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 |
| |
|
| Credit Items |
| |
» Landlord’s name, address,
and phone number (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 |
| |
|
| FHA Loans |
| |
» Copy of Social Security Card
(or other documentation of social security number)
»
Copy of Driver’s license |
| |
|
| VA Loans |
| |
» Copy of DD214 |
| |
|
| Refinances |
| |
» Copy of Note on existing
loan
» Copy of HUD1 Settlement Statement on existing loan
» Name, address, phone number, loan number of existing
loan/lender |
| |
|
|
