Required Documentation

The documents you provide will help the lender determine whether your credit history reflects your willingness and ability to repay the loan and ultimately how much you can afford to spend on your home.  The results have an effect on the loan amount you receive and the interest rate you obtain.  Below is a comprehensive list of the items typically required; however, some of the items may not apply to your situation.  In most cases, the original documents are necessary.  If you have any questions about what is needed and what is not, just contact a PMAC Loan Professional to quickly clear up any confusion.

Documentation Checklist

Purchase Items

• legible sales/purchase contract signed by buyers and sellers
• copy of sales/purchase contract if you are selling your present home
• relocation agreement if you are being transferred to the area

Credit

• name and address of landlord(s) from the past 2 years, if you’ve been renting and/or information on residence history
• cancelled checks for rent or utility bill payments proving payment history (usually required for borrowers who have little or no traditional credit established)

Applicants who filed a bankruptcy within the past 7 years will need:

• a copy of petition, schedule of creditors, and discharge papers
• a handwritten explanation of the reason for bankruptcy
• evidence of excellent credit since the bankruptcy

Income

• proof of all income from the past 24 months including but not limited to tax returns, W2s, other proof of employment or income verification
• pay stubs from the last 30 days showing year-to-date earnings, name, and social security number
• award letter and copy of most recent social security, retirement, or disability check
• divorce or separation settlement agreements and/or cancelled checks if you choose to include alimony/child support payments or expenditures in your income statement

Self-employed or paid by commission applicants will need:

• federal income tax returns with all schedules for previous 2 years
• year-to-date profit and loss statement
• current balance sheet
• corporate tax returns and all schedules

Assets

• proof of all deposit accounts including checking, savings, money market, IRA, 401K, Keogh, profit sharing and brokerage accounts along with three most recent statements showing account numbers, name and address of bank branches, and institutions. 
• if any accounts were opened recently or had large deposits made to them, bring documentation for source of funds

School

• transcript or diploma if you have been a student in the past 2 years 

Miscellaneous

• gift letters if you are receiving a monetary gift to help pay the down payment or closing costs
• copy of driver’s license and social security card (for FHA loans)
• original Certificate of Eligibility and DD214 (for VA loans only)

With all the documentation involved, you will be sharing important personal and financial information with your lender.  Sometimes this documentation does not reflect well on an applicant’s situation and he or she may be tempted to falsify or forge some of the information.  But even the slightest change is considered fraud and perjury.  And worse, you might become committed to an unaffordable debt every month. 

Lenders have the right to request you sign forms allowing them to obtain documents directly from the IRS.  You have the option to refuse signing such papers, but the lender can also refuse the loan.  It is in your best interest to be honest.  If you have any concerns regarding your financial situation and the effect it may have on your loan, contact your PMAC Loan Professional for assistance.  What you think may be harmful, may end up being nothing to worry about at all.