Both Dinosaurs and no doc loans are extinct. Pretty soon there will be an exhibit at the Smithsonian with a no doc loan under glass. Future generations will be astounded by the few pieces of paper that once qualified as loan documentation.
A few of years ago you could be approved for a loan with almost as little information as a credit score. That's why we are in the mess we are in now because so many people were encouraged to state incomes higher than their real income. When it came time to pay those loans back, the money wasn't there.
Since the bailout of Freddie Mac and Fannie Mae, lenders are adhering to strict qualifying guidelines that will help them ensure that borrowers can actually afford the loans they seek. If you are planning on purchasing a home or refinancing a home you can pretty much count on your bank to ask for the information below--by the way, your bank will probably ask for the same information if you are using a short sale to sell your house.
1. W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every person signing the loan.Copies of at least one pay stub for each person signing the loan.
2. Account numbers of all your credit cards and the amounts for any outstanding balances.
3. Copies of two to four months of bank or credit union statements for both checking and savings
4. Lender, loan number, and amount owed on other installment loans, such as student loans and car loans
5. Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate
6. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account
7. Copies of your most recent 401(k) or other retirement account statement.
8. Documentation to verify additional income, such as child support or a pension.
9. Copies of personal tax forms for the last two to three years.
If you are planning to purchase a home I can recommend some lenders that have provided good service to my buyer clients in the past.
Meyer Leibovitch
RE/MAX Realty Group
301-674-5227
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