Showing posts with label Documents needed for Kentucky Mortgage Loan Approval. Show all posts
Showing posts with label Documents needed for Kentucky Mortgage Loan Approval. Show all posts

The Dos & Don’ts of Applying for a Mortgage in Kentucky



DO maintain up-to-date records The mortgage application process is paperwork-heavy, and lenders could ask you to pull up records at a moment’s notice. To make things easier for yourself, make sure you have the following records readily available:

  • Income: Underwriters typically verify income and tax documents through your employer, so hold onto new paystubs as you receive them.
  • Assets: It’s best practice to save all incoming account statements in the order in which you receive them; keep all numbered pages of each statement.
  • Gifts: If you’re receiving any gift money from relatives, they’ll need to sign a gift letter (which your loan officer will provide) and an account statement evidencing the source, which must be “seasoned” funds.
  • Current Residence: If you’re currently renting, continue to pay your rent on time and save proof of payment. If you intend to sell your current residence, be prepared to show your HUD-1 Settlement Statement. If you plan on renting out your home, you may need to show sufficient equity, a lease, and receipts for the security deposit and first month’s rent.

DO keep your credit score in mint condition. Continue to make payments on time. The lender might pull your credit report again, and any negative change to your score could jeopardize your approval.

DO understand that things change. The requirements to receive approval for a home loan are always changing, and underwriters require more documentation now than they have in the past. Even if requests seem silly, intrusive or unnecessary, keep in mind that if they didn’t need it, they wouldn’t ask for it.

DON’T apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent you from closing on a home. If you must open a new account (or even borrow against retirement funds), be sure to consult your loan officer first.

DON’T change jobs midway through the process. Probationary periods and career or status changes — such as from a salaried to a commission-based position, leave of absence or new bonus structure — can be subject to strict rules.

DON’T make undocumented deposits. Large (and sometimes even small) deposits must be sourced unless they’re identified. Make copies of all checks and deposit slips, keep your deposits separate and small, and avoid depositing cash.

DON’T wait to liquidate funds from stock or retirement accounts. If you need to sell investments, do it now and document the transaction. Don’t take the risk of the market working against you, leaving you short on funds for closing.


Do's and Don't of Getting A Mortgage Approved and Closed in Kentucky?.

Dos & Don’ts of Applying for a Mortgage in Kentucky 

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval: Required for all Borrowers Pre-Approval Required Documents W-2’s (2 years) Drivers License Tax Returns (2 years) Bank Statements (2 months- ...


Kentucky VA Mortgage Checklist Documents for Approval




Required for all Borrowers

Pre-Approval Required Documents W-2’s (2 years)

Drivers License

Tax Returns (2 years)

Bank Statements (2 months- all accounts)

Employed Borrowers (with a W-2) Paystubs (totally one month) Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter

Self-Employed Borrowers

(1099/Schedule C/Schedule S, etc.)

Tax Returns (2 years; Personal and business with statements and schedules)

Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter


Veteran (VA) Borrowers

Pension Reward letter

Social Security Reward Letter Social Security Card

Retired Borrowers

Social Security Reward Letter & 1099 2 years W-2’s (where applicable) Social Security Card

Retirement Statement (most recent 2 months)

Social Security Income Borrower

VA Benefits Award Letter Social Security Card

Retirement Statement (most recent 2 months)

Documents Needed for a Mortgage Loan Approval in Kentucky

ALL BORROWERS:

  1. Copies of W-2's for the last two years;
  2. Copies of paycheck stubs for the last 30 days (most current);
  3. Copies of checking and saving account statements for last three months (all pages);
  4. Copies of quarterly or semi-annual statements for checking, savings, IRA's, CD's, money market fund, stock, 401k, profit sharing, etc.;
  5. Copy of sales contract when ratified;
  6. Employment history for the last two years (address any gaps of employment);
  7. Residency history over the last two years, with name, phone number, address and account number of Land or Mortgage Company. Rental property copies of leases plus mortgage information.
  8. Canceled earnest money check when it clears or corresponding bank statement, if applicable;
  9. Commissioned or bonus income -- if 25% or more of base, must have tax returns;
  10. Check for the expense of appraisal & credit report;
  11. Refinance Copy of Note, Deed of Trust, Settlement Statement, Survey, and Insurance information;
  12. Any assets used for down payment, closing cost, and cash reserves must be documented by a paper trail;
  13. If paid off mortgage in the last 2 years, need copies of HUD1;
  14. Copy of drivers license for applicant and co-applicant.

SELF-EMPLOYED BORROWERS:

  1. Copies of most recent 2 years tax returns (with all schedules including k-I's if applicable);
  2. Copy of current profit & loss statement and balance sheet;
  3. Copy of corporate/partnership tax returns for most recent 2 year period if owning 25% or more of company -- copies of W-2's and/or 1099 forms.

DOCUMENTS WHICH MAY BE REQUIRED:

  1. Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits;
  2. Previous bankruptcy, need copies of petition for bankruptcy and discharge, including supporting schedules;
  3. Divorce Decree if applicable;
  4. Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.

DOCUMENTS NEEDED FOR FHA/VA LOANS:

  1. FHA: Copy of social security card and drivers license for each applicant and co-applicants;
  2. VA: Original Certificate of Eligibility and copy of DD214 Discharge Paper;
  3. VA: Name and address of nearest living relative