Loan Documentation Requirements
Home lenders require specific documentation when borrowers are applying for a home loan. Using these house loan tips will help make sure that you provide the right information at the time of application, and avoid unnecessary home loan closing delays. In addition to the name, address and telephone number(s) of the borrower(s), additional documents that are required include:
A) Pay Stubs - Most lenders will require at least two (2) pay stubs from each borrower. In some cases, you may be asked for as many as four (4). Once the loan is approved, borrowers may also be asked to provide updated pay stubs prior to closing;
B) Bank Statements - Depending on whether borrowers are self-employed or a W2 employee, they will be asked to provide a certain number of bank statements. In the case of self-employed persons, as many as twelve (12) statements or a full year's worth may be required. Those who have W2 income will be asked for a minimum of three (3) months of bank statements;
C) Other Sources of Income - Borrowers who have alternative sources of income, including Social Security, pensions or child support payments, must provide proof of these income sources. The lending officer who is taking the application will advise what proof is required;
D) Purchase and Sale Agreement - Lenders will also require a copy of the property purchase and sale agreement along with proof that you have made a down payment or other good faith deposit on the property..
One of the many reasons that lenders will ask for this information is to confirm the information on your application form. This will allow the lender to determine if you qualify for a loan using debt to income ratios.