5. Proof of housing payments
Whether you own or rent, you must document your housing payments. Credit reporting agencies list mortgage payments. Provide copies of your mortgage statements or a copy of your lease agreement with twelve months’ of checks showing rent payments on time.
If you rent your home from a professional management firm, they can verify that you have paid rent on time. If you rent from a private party, most lenders (though not all) will require you to show canceled rent checks for twelve months.
6. Major assets (other real estate owned, automobiles, boats, antiques, stocks, etc.).
You don’t have to include individual stocks if you own shares in a mutual fund or hedge fund. Just provide the latest fund statement. Include vested cash value of whole-life or universal life insurance policy, if any. (Cash value is not the same as the face value. Cash value is what you would get from the insurance company right now, if you surrendered the policy while still alive.) If there are antiques or other collectibles, provide only the total collection value; you don’t have to itemize.
7. List of debts (car loans, furniture loans, student loans, and credit cards)
Even though the debts will be on the credit report, you must be aware of all of your debts so that you can tell if the credit report has mistakes. Include any debts that you have co-signed for, like when you co-sign for a child’s car.
8. Divorce settlement papers, if applicable, no matter how far back in time
9. Delinquent or inaccurate debts or credit report items
If you paid a collection, judgment or lien (especially a tax lien or other lien against your house), include proof of payment.
10. An irrevocable gift letter if you are receiving a monetary gift from a relative.
11. Purchase agreement (for new purchase).
Provide a copy signed by both parties, including all the signed disclosures.
12. Items needed for a refinance
Furnish copies of your note and deed of trust, home insurance declaration page, copy of your last property tax bill.
13. If you own investment real estate in your name, you need rental leases for each of your properties, plus the items listed in #12 for each of your properties.
14. Bankruptcy
Supply all pages and schedules for any bankruptcy filing within the last seven years, and the discharge sheet, for any type of bankruptcy (Ch 7, Ch 11 or Ch 13). Bankruptcy must be discharged before the date of the loan application.
Preparation Leads to Financial Freedom
Talk to your loan officer to see which documents you need to copy and send. Prepare your credit and your real estate mortgage loan documents so you can buy your dream home and even multiple investment properties.
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