One of the biggest delays in beginning the loan process is retrieving ALL of the necessary initial documentation from your buyers. As a rule, begin prepping your buyers to gather the following documentation. When you refer them to your loan partner this could save you a lot of time and paint an accurate picture of your buyers financial picture. Which will always expedite the process and save you time.
Here is an example of what I send my borrowers on every transaction. Even if they are still looking for a home.
Here are the documents we'll need from you and any co-borrowers:
1. Your most recent 1 month's paycheck stub(s)
This means:
If you get paid: |
You should send: |
Every week |
Your most recent 4 pay stubs |
Every 2 weeks |
Your most recent 3 pay stubs |
Every month |
Your most recent pay stub |
2. The most recent 2 years of your W-2 and/or 1099
• If you are employed by a company, you get a W-2 from your employer at the end of each year
• A W-2 reports wages paid and taxes withheld during the year.
• If you are self-employed, you receive a 1099 that reports wages paid.
3. Your most recent 2 months of bank & investment statements
• Make copies of paper statements (front & back of each page). If you get online statements instead, print them out. Make sure the funds in your accounts are enough for a down payment and several monthly payments.
• Did you make any large deposits or withdrawals? Write a letter to explain.
4. Completed and signed 4506-T Form
• Your loan officer will give you this form.
• Once you fill it out and sign it, we can access your tax return and verify the information provided
in your loan application.
5. Home purchase contract signed by you and the seller
• Not necessary if refinancing
Additional documentation may be needed depending on your situation.
To learn more about the closing process and home financing in general, call me today. It's always a pleasure to help.
Having a prepared buyer can take literally weeks off your closing time. In my opinion this is your loan partners job, but if you want to take closing your buyers loans or listings faster into your own hands I would highly recommend you start here.
Good luck!
-Sean Thorson, Envoy Mortgage
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