Loans and the Covid Crisis

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Real Estate

Loan Applications: What You Will Likely Need

This quickly changing financial market has many people taking a closer look at loans and re-finance opportunities.  Loan rates are near all time lows. The Covid crisis has resulted in most lenders tightening their requirements for a loan.  Be prepared.

Following is a list of documents that most Banks and Mortgage Brokers ask for:

· 3 months’ bank statements on all accounts, including 401k & IRA's

· Copy of HUD1 Settlement Statement on recent sales of homes

· Gift letter (for funds from family members); donor’s bank statement; copy of gift check; copy of deposit receipt

· Landlord’s name, address, and phone number

· Explanations for late payments; credit inquiries in the last 90 days; charge-offs; collections; judgments; liens

· Copy of bankruptcy papers filed within the last seven years

· Copy of Social Security Card and driver’s license

· Last two years’ W2 forms

· Most recent pay stubs covering a 30 day period

· Federal tax returns (1040’s) for the last two years

· Year-to-Date Profit and Loss Statement (for self employed)

· Corporate or Partnership tax returns (if you own more than 25% of a business)

· Copy of purchase agreement (if you have already made an offer)

· Receipt for child support payments

· Copy of Divorce Settlement