Applying overview -> Documentation checklist

Documentation checklist

All loan applications require extensive documentation.

The exact documentation that will be required varies depending on many factors. Below is a list of the most common items your lender will need. Depending on your situation there may be additional documentation required, your lender will advise.

The easiest way to send documents is as a PDF file. CPAs will have your tax documents in a PDF file; if you do your own taxes your software will allow you to save your return as a PDF. Most asset account statements are available as a PDF online which can then be saved to your desktop and forwarded. Most clients use Dropbox when sending financial documents for convenience and enhanced security.

Income documentation:
  • The two most recent 1040s, all pages and schedules. If it is after April 15, and you haven’t filed your current return, send a copy of your extension.
  • Supporting tax return documentation, as applicable:
    • W-2
    • 1099
    • K-1
  • Most recent pay stubs to cover one month earnings.
  • Social security or pension award letter, if applicable.
  • If filing Schedule C, a profit and loss statement covering the time since the last tax return. For example, if it is May of 2014 and you are on extension and haven’t filed your 2013 taxes, you’d provide a year-to-date P&L for 2014 and a P&L for all of 2013. If you had filed your 2013 taxes, the year-to-date P&L would be sufficient.
  • Verification of income from Schedule E is situational. If you receive K-1 income, and own 25% or more of a partnership or business, you will probably be asked to provide partnership or corporate returns. Rental income without a history, or which varies from year-to-year, may also generate additional paperwork.
Asset documentation:
  • Two most recent statements on primary asset accounts including retirement.
    • You need to provide all pages, even blank ones.
    • Internet screenshots or printouts will not suffice.
    • ‘Primary’ means meaningful in your situation: For example, if you have $250,000 in liquid assets, you will not need to provide the statement on an old IRA with a $3,000 balance. However, if you are applying for a mortgage which has a stringent reserve requirement, you may need to provide statements for everything. Your lender will guide you.
Other necessary items:
  • Copy of current driver’s license.
  • If you own property, a copy of the most recent mortgage/home equity line statements, and a copy of the declaration page from your homeowner’s insurance policy, which your agent can easily provide.
  • Contact information for your management company if you are renting, or, if you are renting from a private party, copies of the last 12 months of cancelled rent checks, front and back.