Applying for a mortgage can be overwhelming. It seems that every lender is different and regulations keep changing. Above everything else (well, besides changing rates, anyway), people want to know what documents we recommend for the most sound preapproval letter. Here are some things that Quicken Loans recommends in order to speed up the home buying process.
Documents Thrice as Nice: 2-2-2
We highly recommend you get these documents ready because we’re going to ask sooner or later. We’ll need two years of W-2s, two recent pay stubs, and two bank statements. Proof of income can change depending on your employment.
Employed: When getting preapproved for a loan, we recommend “2-2-2” which is two years of W-2s, two recent paystubs and all the pages of two recent bank statements.
Self-employed: If you have 25% or greater ownership in a business, you’re considered self-employed. We would need all pages of a 1040 form and all schedules for the last two years along with a full business tax return for the last two years. You may be asked to provide proof of self-employment which can be shown through many different documents like membership in a professional organization, a signed letter of business verification from a Certified Public Accountant, or an employer’s liability insurance letter.
Retired applicants: Wherever you get your income, we would need to verify that through award letters, pensions or other statements. Typically, this also includes a 1099 for the last two years.
Lastly, if you own a home, we’d like to see the most recent mortgage statement. If you’re free and clear, we’d like a copy of the current property tax and homeowners insurance statements.
Pertaining to credit reports: If you’ve settled anything on your credit report, we would need a document of the settlement. This just ensures that any blemish seen can be disregarded.
Pertaining to bankruptcy: If you filed for bankruptcy, we would need the discharge papers. We also recommend that you have two years of clean credit history after a bankruptcy.
Pertaining to liquid assets: If you are liquidating assets, we would need the two most recent asset statements of the account you are liquidating. Any asset document provided must have your name, address, bank name, date, account number and all pages of the document.
The Next Steps
Here’s how it works: You call us, chat with us, email us, blog us, or tap us on the shoulder, and we’ll talk to you about your mortgage options. We’ll ask you some questions and pull your credit to ensure the money we’re talking about isn’t some made-up number, but something you can really depend on. Multiple credit pulls within a short time won’t damage your credit like it’s often portrayed.
We’ll send you the preapproval letter that you can review immediately. You need to view it within 72 hours or it will expire. We do this for security reasons.
Next, upload or fax us the 2-2-2 documents (not email, for security reasons) and you’ll be all set.
Feel free to house hunt at this point, and keep us informed about any decisions you make—we’re truly interested in helping you out.
Need more information? Comment below, and we’ll be happy to help!