Ryan’s Mortgage Blog:
Branching off the sub-prime talk…I wanted to go over what kind of documents lenders require when you receive a mortgage based on full-documentation. Lenders obviously prefer full documentation over little or none, especially after all of the recent foreclosures and sub-prime problems. Look at it this way…if you were going to lend a stranger money wouldn’t you want to know their employment and financial history first? Lenders offer better rates for people who can provide full documentation (safer gamble for them). Before I write a list of items lenders ask for, I wanted to make sure you realize this is just a “common” list used by most lenders. Every scenario is different and some loans require more documents from the borrower than others. Example… if you declare income from a rental property, a copy of the current rental contract may be required. Also note that everyone on the loan (borrower/co-borrower aka co-signer) usually has to provide all the documents, not just one person. Here is the list of documents usually required for Full-Documentation loans:
– 2 most recent years tax returns
– 2 most current pay stubs from all jobs
– 2 most current bank statements w/ account #
– 2 most current statements from assets (IRA, Stocks, etc..)
– Proof of additional income (rental contracts, social security, disability, etc..)
– Credit Report with list of all debts (usually provided by broker)
– Copies/Proof of any other debt not on credit report
If you do not have any credit history, you may need to offer the lender copies of rental payment receipts or checks, utilities and other recurring debt to show payment history.
Having all these items with you when you visit a lender/broker will help speed up the process.
If you have any mortgage related questions feel free to call me at 805-540-0866, or email me at my personal address: RyanBaker500@gmail.com.