More Than a Credit Score

Roberta and Jimmy at home in Kerrville

A Blast from the Past- Kerrville, TX

I was updating my home-buyer’s packet, and I reached out to a knowledgeable lender, James Dowis, of Infinity Mortgage here in Austin, to ask him what I need to tell people to prepare before they go home loan shopping. James, being the ever-helpful person he is, promptly responded with these suggestions:

For all pre-qualifications:

 

  • 2016 & 2015 W-2’s and/or 1099’s.
  • If you are a business owner please provide your 2015 and 2016 K-1’s
  • 2016 & 2015 Filed Personal Tax Returns, all pages and schedules
  • Most current 30 days paystubs
  • Most current 2 months bank statements, including account number, name and address, all pages
  • Copy of your driver’s license
  • Copy of your existing mortgage statement and most recent property insurance bill, if you currently own a home and plan on retaining it

 

When I first talk with the borrower I ask questions including if they have been involved in a foreclosure / bankruptcy /divorce and I alter my document requests to possibly include the following:

 

  • Copy of your divorce decree and child support orders, if applicable
  • Copy of the Trustee Deed from when your foreclosure was finalized
  • Copy of your bankruptcy documentation showing your discharge date

 

For underwriting, we would also need:

 

  • Explanations of large non-payroll deposits.  “Large” typically means 25% or more of gross monthly income.
  • Transaction log from bank statement showing the earnest money check was cashed.

 

All deals, every one, require different documents based on the unique scenarios.  If gift funds are received we need documentation on that.  If the borrower is married but the spouse will not be on the loan there are documents needed for that.  So, we collect the basic items, review them along with the application and then ask for the remaining items.

I hope this helps you buyers out there on this “Mathematical Monday”. Thanks, James!

 

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