When applying for a home loan in today’s market you need to go FULL DOC meaning you have to prove that you can afford the payments for the mortgage. The bank will be calculating your total income and your total monthly debt obligations. The goal is for your all your monthly debt obligations including your monthly mortgage principal, interest, property and tax and insurance to be 45% of your income. If you do not qualify to go full doc there are stated programs available if you have adequate equity, at least 30-40%, the rate is higher when not providing income documentation.
You typically need these documents for a loan, as you go through the loan process the lender may ask for additional documents.
- Mortgage Statements for all mortgages owed (if applicable)
- Property Tax Bill for each property owned (if applicable)
- Insurance Declarations Page showing annual premium for each property owned (if applicable)
- HOA Bill (if applicable)
- 2 Years complete Federal Tax Returns with all schedules
- If self employed will need 2 Years Business Federal Tax Returns with all schedules
- 2 Years W-2’s & 1099’s
- 1 month worth of paystubs – current
- 2 months current bank statements (all pages) for all accounts
- Drivers License – legible copy
- Social Security card – legible copy
Tip: Make file folders and organize all your bills. Keep your bank statement copies, all pages, do not throw them out. I recommend keeping at least two years of all your records. Make sure to keep all your documents in a safe place, and don’t forget where you put them.
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