ColoradoHomeLoans.com

Documentation List

INCOME

For salaried and hourly employees:         I need copies of the last two years W-2s and the most recent month’s worth of pay stubs. (example – if you are paid every two weeks I need the last three stubs)

For self employed borrowers or employees that receive >25% of the compensation from bonus or commission:       I need copies of the last two year tax returns, personal (and business if applicable). I also need copies of the last two years W-2s, 1099s, K-1s as they apply to your situation.

If you have gone through a divorce and are receiving alimony or child support, then I need a copy of the divorce decree and settlement agreement. I will also need proof it has been received (copies of court record or canceled checks for the last 6-12 months)

ASSETS

I need copies of the last two months worth of bank statements for all your accounts: checking, savings, IRA, Mutual Funds, etc. If you get quarterly statements instead of monthly, then just send the most recent quarterly statement is fine.

If you are selling another home for down payment, then I need a copy of the listing agreement and/or contract for sale to the new buyer, as soon as available. We will also need a copy of the settlement statement from the closing, when that occurs.

If you have any real estate that will be retained after our closing, I need to get a copy of the mortgage statement for each property, to show whether tax and insurance is being escrowed for in the payment.

CREDIT

If you have sold a property in the last 12 months, then I need a copy of the settlement statement.

If you have gone through a divorce and/or are required to pay alimony or child support, then I need a copy of the divorce decree and settlement agreement.

If you have had a bankruptcy in the last 7 years, I need a copy of the petition and discharge papers from that.

DEPOSIT

We need a check payable to ColoradoHomeLoans.com in the amount of $350. This is a deposit on the appraisal order and credit report. It will be credited back against actual costs at closing. Therefore this is not necessary until you have a new property under contract

INSURANCE

I will eventually need to know the name and phone/fax for your insurance agent, on the subject property. The loan cannot close until I have that information, so please don’t wait until the last minute.

PATRIOT ACT

I need a copy of a photo ID. Generally a Driver’s license copy will do fine. Please make sure if you fax, that the image is legible. (try using the photo setting on the copy machine)

CONTRACT              I need a copy of the purchase contract on all purchases

THINGS NOT TO DO PRIOR TO CLOSING

Now that you are applying for a home loan, there are certain things you should be aware of, in order to prevent any unnecessary difficulties in closing your loan on time. Your loan approval is based upon your financial picture. Any substantial change in that financial picture, prior to closing, may create delays. Here is a list of common problems that come up, which have delayed closings in the past:

Do not change your place of employment or give notice, unless you have discussed it with me ahead of time. New jobs generally need to be documented. So if I have enough prior warning, I can make sure your closing date won’t be affected.

Do not make major purchases or incur new substantial debt obligations, prior to closing. Here again, it is important to make me aware of any pending car purchases, or the like. Your qualification is based upon your debt-to-income ratios, so new debt will change that figure. If I know ahead of time, I will be able to tell you if it will adversely affect your loan closing.

If you intend to pay-off a substantial debt obligation, make sure we discuss it first. It may be preferable to pay it at the closing, rather than in advance. It can take up to 30 days with some creditors to confirm a zero balance. Since this may affect your debt-to-income ratios, having this delay may adversely affect your closing date.

Try and avoid trips to Las Vegas, prior to closing your home loan. As silly as this may sound, I have lost at least two closings in the last 20 years, because the down payment was lost while gambling.

Try and make copies of paper trails for large movements of funds, into any of your accounts. Mortgage companies will be concerned by any large deposits, not explainable by payroll deposits. Funds transferred between accounts can also cause confusion, and create the need to re-verify account balances at the last minute. On the other hand, if there is a complete paper trail, then the potential for any confusion is eliminated. Keep in mind that not every source of funds is acceptable. Unsecured borrowing for a down payment is generally unacceptable. Please don’t hesitate to consult with me before engaging in anything like that. There are usually many alternatives I can suggest, which will prevent the need to borrow the funds to close in this fashion.

In summary, most changes in your financial picture can be accommodated for, so long as I have forewarning. Most loan delays or declinations result from surprises in the final days before a closing. Mortgage companies in general will call and verify employment the final week before closing. New credit reports may be ordered to “clean up” erroneous information, and instead find several new debts in the process. So always communicate these kinds of changes to your financial picture in advance. Remember the loan officer is your friend. We are not paid unless the loan closes, so we are as interested as you are in a quick and timely closing.

For a quick and timely closing, call the pro! Dan Smith can be reached at 303-674-0201