What Items Do I Need to Qualify for a Loan - I Need Tax Returns
This blog post is in addition to my in-depth analysis of HOW MUCH documentation is now required to do a Full Doc (fully documented) loan as of the 2010 time frame.
Let's just take a look at the list here:
- Most recent 30 days' paystubs, for military that's the LES.
- Most recent 2 years' W2s.
- Most recent 2 years Federal tax returns - SEE MORE DETAIL BELOW.
- Most recent 2 months' bank statements - ALL PAGES.
- Legible copies of Driver's license and Social Security card, including for the spouse even if the spouse is not going to be on the loan.
- Gift letter signed by family member if you are getting a gift - check early on with your loan officer if gifts are allowed for the type of loan you are doing AND from the person willing to give you a gift.
- Bank statements and copy of check or line item for wire, showing the paper trails for your earnest money deposit and later your down payment and closing costs leaving your bank and going to escrow.
- Power of Attorney if you are going to use one. Note that recently a wholesale lender was taking the position that a single borrower could not use one; it wasn't my loan, but it raises a question that should be asked early on to prevent headaches getting close to the end.
- For a refi, the Note on your home.
- For a refi, the mortgage statement for your home, and the tax and insurance statements if they are not collected in the monthly mortgage payment.
- Other investment properties: need to show the mortgage statement, taxes and insurance. A mini-appraisal may be required as to rents on the home.
- On other investment properties, unless you're moving from your personal residence and turning it into a rental - check with your loan officer about the program you're doing as conventional, FHA and VA differ in this - generally, you need to have claimed the rental income on your taxes in order for it to count as income (and not just have the whole mortgage "hit" your income for purposes of qualifying for a loan).
- Other documentation specific to the borrower: letters of explanation for their situation relating to rent, address, tax returns (e.g., military who show very little income on tax returns related to deployment), etc.
A big note on tax returns: the borrower needs to have filed them! This is a Full Documentation lending environment, and lenders are "pulling" tax returns as a required item right around the time loan docs are drawn. When they pull the taxes, the taxes need to have been filed. And, any taxes owing need to be documented as paid, so keep documentation - receipt, letter, copies, etc. - showing that your taxes are done, paid, taken care of.
It takes 4 to 6 weeks for the IRS to show a given tax filing in its system, so if taxes haven't been filed yet, get them in!
Lisa Delzompo (951-704-4559)
"May your home always be too small ... to hold all your friends!"
CA Dept of Real Estate, Real Estate Broker License #01379811;
NMLS Identifer #331744
REAL ESTATE: www.SandToSeaProperties.com. Covering northern San Diego, Oceanside, Temecula, Murrieta, Riverside County and desert areas of Yucca Valley, Joshua Tree and Twentynine Palms, CA.
LOANS: PRW Lending, Inc. Call direct 951-704-4559, or email me at lisa(@)sand2sea.us
Information is deemed reliable but is not guaranteed. Information is general and may not address your particular situation. Do not rely solely on this or any information you find on the internet. You should consult relevant professionals directly about your real estate, financial, etc., situation.