Positive Real Estate Professionals

One of the first steps you will be asked to do after choosing a lender is to complete the Uniform Residential Loan Application, also referred to in real estate parlance as the 1003. Most loan originators/officers will complete this on their computer with the information you provide while talking on the phone, or direct you to a secure website where one can be completed. The 1003 is required for all mortgage loans and contains most of borrower’s important information. The information contained on the 1003 is initially unverified but can be changed as it is verified. Many companies will provide a pre-qualification letter based on this unverified information.

Most realtors prefer that a borrower be pre-approved prior to doing all the preparation work required to show potential homes to prospective buyers. In order to get pre-approved, which is a time sensitive commitment, based on verified information, that the lender is prepared to write a home loan, there are often underwriting conditions that must be cleared prior to final approval. These conditions will vary based on individual circumstances but there are several items that will invariably be requested for a full documetation loan (full documentation, a.k.a. full doc, loans will generally garner better pricing as they are less risky for the lender).

Some of the most requested documents are:

• Two most recent detailed (show withholdings) paystubs – these will be compared with the income and employment information supplied at the time of application.
• Previous two years W-2 or tax returns (all pages – individual filings only)
• Other income documentation – pension award letter, social security award letter, disability award letter, etc.
• Two most recent month’s bank statements (checking and/or saving accounts – all pages) – these will be used to verify asset information, receipt of governmental and/or employer awards, and reserves (money on hand) supplied at the time of application.
• Other asset documentation given at the time of application to qualify for the loan – 401k statements, IRA statements, stock statements, mutual fund statements
• If you have declared bankruptcy, gotten divorced, lost a property due to foreclosure, or any other major event for which documentation is provided, these items will be necessary