Are you considering purchasing a home? Today's mortgage lenders are more thorough than in prior years when reviewing a buyer's financial data. If you are self-employed, no more no doc loans, or stated income loans. The days of seeing things that are not exactly correct and thinking they will be overlooked, are long over. For you first time buyers needing an FHA loan, most lenders require a credit score of at least 620.
Below is some information one of my preferred lenders shared that you may find helpful.
By the way, interest rates are still fabulous!
Here are some requirements for today's conventional and FHA loans and reasons for the documentation.
1. Your most recent 30 days worth of pay stubs for each applicant.
2. Most Recent 60 days of bank statements for all asset accounts (checking, savings, money market, 401k, etc.) Need all pages of the statements even if they are blank pages. For example, if the statements say page 1 of 6, they would need 6 pages for that statement. This is very important, and often overlooked by borrowers. If you do not have these statements, a 60 day printout from a branch is acceptable, as long as they stamp it with the bank stamp and sign it. If there are any large deposits (greater than $200) they will be required to document the source of funds for those items. For example, if you have an $800 deposit that was the result of expense reimbursement for work, they are required to have a copy of the check to show what the source of funds is.
3. 2007 W-2’s and complete, signed (on page 2 of the 1040) Federal tax returns. Do not need the state returns. Until the IRS releases transcripts for 2009 tax returns which will likely happen at some point in June, we still need to collect these. We are required to match up 2 years of the tax returns that the borrower provides with the corresponding 2 years that the government provides (which we order). If these two do not match up, this is one of the fastest and most accurate tools for catching a borrower that is trying to misrepresent their income situation.
4. 2008 W-2’s and complete, signed (on page 2 of the 1040) Federal tax returns. We do not need the state returns.
5. 2009 W-2’s and complete, signed (on page 2 of the 1040) Federal tax returns. We do not need the state returns.
6. Signed documents that are included in the loan package. If this is an FHA loan, original, signed copies of the loan application and any other FHA documents are required to be returned with the other documentation.
7. Insurance information (who you plan to use).
8. Attorney information. We are now required to ask for the attorney’s fees up front to keep us in compliance with the new HUD-1 settlement statements, and the rules surrounding those.
Please contact me for more tips, and some worthly lender contacts if you would like to check further into getting prequalified or compare rates and loan programs.