Loan Officer Application: Items to Give your Loan Officer

The following is not everything you need for a loan, usually you need more, but this is the general stuff you might as well just get ready to prepare for your loan officer. just save some time and days upfront and have some of it ready. Your loan officer may wait for more later. The loan officer really can’t even submit the loan until he/she gets this full package. Now you can take 10 days to collect all of this info, or just have it right away upfront for your loan officer. If you get this to your loan officer in 48 hours or less you will really impress them.

2 years personal tax returns-This is considered a federal document, so they think you will tell the truth and it will be accurate.

2 years business tax returns-This is only if you are self-employed, often you have a lot of write-offs and sometimes stated income works better in these situations.

Business profit and loss P&L-This is a statement your tax account may have showing all profits and all losses

1 full month of pay stubs-They need to see written prove to verify you make that income, and need 1 month to get an average.

2 years of W-2’s. Again this will be considered accurate info and used as the lenders like to see 2+ years at the same job, it shows stability. Less than 2 years at one type of job, loans for that are avaiable, just tougher.

2 months most recent bank statements both checking and savings (all pages)-As you can imagine they need to verify your assets and not that it was just put in this week. They want to see that the money has been sitting in there for awhile(seasoned) And they want every page, even if the last page is blank or has 2 lines, those 2 lines may show a big withdrawl, don’t hide anything show them all pages.

Most recent quarterly statement or 2 months most recent retirement account-Sometimes having money here helps if it’s seasoned and you don’t have to use it. IRA, 401k/mutual funds/stocks-anything you have invested you’ll want to show them, as this helps you look good to the lender.

Certified Copy of Divorce Decree (if applicable)-Obviously only if applicable, ownership to sell requires two signatures, at least in Minnesota, so this is important to a lender. as well has how assets are broken down.

Bankruptcy papers filing and discharge-The reason a bankruptcy is important to a lender is a bankruptcy can slow down a foreclosure a lot and cost a lender a lot. Borrowers also can “clear the slate” and file bankruptcy every 7 years. If the borrower had a history of a bankruptcy and had one 6 years ago, the lender may see that differently then someone who has never had a bankruptcy or had one 1 day ago, where it will take 7 more years minimum.

home ownership insurance info-You will need pre-paid insurance or an insurance binder typically for 1 year for the closing. Often the lender keeps 4-6 months of pre-paid insurance paid at closing to protect the house, which also protects themselves. If at anytime your insurance lapses, the lender will immediately order insurance themselves, and put it on the property and use monies held in your escrow account.

mortgage statements for ALL loans-It’s just easier to show payment amounts, and obligations as your mortage statements have all important info all on that page, so you might as well grab that page.

Lease agreements-If you have renters in any of your properties, you will want to show a signed lease to the lenders. The reason is that it shows you are taking in rental income. Often the lenders count 75% of that income in your debt to income ratio. You will want to provide leases for all properties you have leases on.

Property Tax statements-This is counted as a debt, a liability to you, it will have to be added to your 1003 and your liabilities.

Copy of Driver’s license or state ID-Your driver’s license will be needed also at the time of the closing, so the notary can stamp your papers and know the right person is buying.

Your loan officer will ask for more info along the way, but the above will get you started and get the process moving forward. Even days before closing the loan officer could ask for more stuff, that’s because the lender asked for more stuff, you may not know that stuff until 1 week before closing. The loan officer will need this info back promptly, these are your stips and conditions, the final things the lender needs.

You will also need to verify where your down payment is with the loan officer and will need that ready to bring to the closing.

Call your loan officer along the way for updates. History has proven to me that loan officers who are too hard to reach or seldom call back, often have too much they are working on and the results often are lacking. 24 hours before a call back isn’t that long if it happens a few times, but if you have to call them 5 times in 2 days, then something is wrong.

If you need to be put in touch with a loan officer please email me ron@minnesotainvestors.com

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