A lot of Loan Officers don’t take the concept of a thorough loan application as seriously as they should. By taking a clear and concise loan application, you set the tone for the rest of the transaction to be a smooth one.
Borrowers need to a complete Uniform Residential Loan Application and supply the lender with supporting documentation (listed below).
There are several parts of the Uniform Residential loan application (1003) that need to be completed by the borrowers. Part I- Type of mortgage, Part II – Property Information, Part III – Borrowers information for the last 2 years, Part IV – Last 2 years employment history for all borrowers, Part V – monthly income and combined housing expense, Part VI – Assets, Liabilities and schedule of real estate, Part VIII – Declaration and Part IX – Borrower signature, which is also on top of page 1 of application
Typical items that accompany the 1003 are listed below:
TAX FORMS
Last 2 years W-2’s, 1099’s
Self Employed (s) – Complete tax returns for last 2 years for both business and personal. Include all K1’s
Profit and loss statement
Business license
ASSETS / INCOME
Pay stubs for most recent 30 days and or VOE. Pay stub to include YTD income.
All pages of the most recent 60 day asset statements (bank, retirement. Etc)
Profit & Loss Statement up through
BUILDER PACKAGE
Builder resume
Sub and supplier list
W-9
Insurance requirement
Permission to fax form
Plans and specs signed by borrower and builder
CONTRACT TO BUILD
Fixed Price contract with start and finish dates established
Cost breakdown (fixed price must match budget)
Property address identified
Description of material
OTHER / MISC.
Divorce Papers
Bankruptcy Discharge Papers, complete copy
Copy of Social Security Awards Letter
Copy / Proof of Pension Income
Copy of recent mortgage coupon/statement for ALL mortgages (need proof of PITI for all properties not on tax returns)
Course of Construction Insurance Policy
Letter of Explanation and copies of any documentation regarding
Gift letter, copy of cancelled check, or copy of deposit slip showing proof of deposit. If gift paid by cashiers check or money order, bank
statement showing funds available in donor account.
Purchase agreement, FULLY executed
Each program/lender will vary on what they need for supporting documentation as well as how the file is viewed. The views and opinions expressed above are those of Jim Hungerford personally, and are not associated with any organization or business directly.
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