If you decide to refinance or purchase a new home, you will be required to sign a set of disclosures in order to initiate the mortgage process. This bundle of documents includes things like the Truth in Lending disclosure, the Good Faith Estimate, the Credit Report disclosure, and many more.
These disclosures allow the bank or mortgage broker to gather sensitive information about you such as employment and credit history, bank statements, income documents, and so forth.
When all the disclosures are signed, the loan process can begin. At this time, the bank or mortgage broker will collect important documents from you and submit your loan application to the mortgage lender.
(Do I qualify for a mortgage?)
If your application is approved, you will receive a conditional approval from the mortgage underwriter with a set of conditions that need to be met in order to receive loan documents. These are called “prior to document” conditions, or PTDs, because they must be satisfied before loan documents can be sent out.
Once loan documents are signed, “prior to funding” conditions will need to be met to ensure the loan actually funds. These are usually sent back along with the loan documents from title/escrow.
Below are the basic documents you’ll need to provide to effectively get your loan funded based upon documentation type:
Full Doc:
Latest 2 years tax returns or pay stubs
Latest 2 months bank statements, VOD, or other acceptable asset reserves
*CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
The bank or lender will call your employer if you are W-2 and do a verification of employment.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (Good Faith Estimate/Truth in Lending)
Stated Income Verified Assets:
Income is simply stated on the 1008/1003 (loan application)
Latest 2 months bank statements, VOD, or other acceptable asset reserves
*CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
The bank or lender will call your employer if you are W-2 and do a verification of employment.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (GFE/TIL)
No Ratio:
No income is provided whatsoever
Latest 2 months bank statements, VOD, or other acceptable asset reserves
*CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
The bank or lender will call your employer if you are W-2 and do a verification of employment.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (GFE/TIL)
Stated Income Stated Assets:
Income and assets are simply stated on 1008/1003 (loan application)
*CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
The bank or lender will call your employer if you are W-2 and do a verification of employment.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (GFE/TIL)
No Income No Assets:
*CPA letter and/or business license if self-employed stating 2+ years employment in same job or field,
The bank or lender will call your employer if you are W-2 and do a verification of employment.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (GFE/TIL)
No Documentation:
Income, assets, and employment are not revealed to the bank or lender.
A CPA or business license is not necessary.
Electronic Appraisal
Preliminary Title Report
Hazard Insurance
Estimated Closing Statement
Signed Disclosures (GFE/TIL)
