Based on the inputs of your application, our client portal will automatically determine the required documentation. You are welcome to begin uploading these documents at your convenience. Please note that since each application is unique, the list of required documents may not be fully accurate until it has been reviewed. You may receive a separate email outlining more specific requirements if needed.
Prior to breaking down the specific documentation categories below based on your income scenario, here is a general list.
2 Years Tax Returns
2 Years W2's
2 Most Recent Paystubs
2 Year Employment History
2 Months Bank Statements
Government Issued ID
INCOME
Income can generally be broken down into 2 main categories. 1.) Employment Income and 2.) Other Income. Within these 2 categories there are different sub-categories that all have different documentation requirements. We've summarized the requirements in this guide but to access the Underwriting requirements directly please visit the links below.
Conventional
Fannie Mae Underwriting Guidelines
FHA
FHA Underwriting Guidelines
VA
1.) Employment Income
2 Years Employment History Only: Mortgages typically require a prior two-year employment history but if you’re using non-employment income such as IRA withdrawals or Social Security, you can jump down to the "Other Income" section below.
Current Employer: Be prepared to provide the employer’s name, address, exact start date and the phone/email for a supervisor at the company who can verify your employment.
Prior Employer: If you haven't been with your current employer at least 2 years, be prepared to provide your prior employer's name, address, exact start/end dates and phone/email.
Pay History: Below are the documentation requirements depending on the nature of how you’re paid. Generally speaking, employment related pay type falls into 3 main categories, Salary, Fluctuating or Self-Employment. Sometimes your pay will be a combination of both. The documentation requirements vary based on your situation as described below.
1A. Salary Income:
2 Most Recent Paystubs + 2 Years W2's
You are determined to be paid a salary if you receive the exact pre-set amount of income each pay period. Sometimes your paystub will list your annual salary but not always. If you’re paid a Salary, below are the documentation requirements. Note that if you’re paid Salary and Fluctuating Income (Hourly, Bonus, Commission, Tips, OT) you will also need to provide the documentation listed in the Fluctuating Income section if you want to use the Fluctuating Income to qualify. If you can qualify for the loan based on your Salary income amount alone, there’s no need to provide the additional documentation. We'll help you determine this during the Pre-Approval Review.
1B. Fluctuating Income:
2 Most Recent Paystubs + 2 Years W2's + 2 Year-End Paystubs
Mortgage Underwriting guidelines require additional documentation for Employees who earn what they consider “fluctuating income.” This classification of income consists of Bonus, Commission, Tips and Overtime as well as Hourly wages where the number of hours worked changes each pay period.
Since a W2 alone doesn’t break down each type of income, you will need to provide Year End Paystubs or some form of annual summary breaking down the amount of income you earned for each category over the past 2 years. If you left a prior employer mid-year, you would need to obtain the last paystub you received before leaving. If you have issues obtaining these Paystubs, there are alternative routes we can take such as ordering a VOI or WVOE.
The lender’s Underwriting Team will closely analyze all Fluctuating Income from the prior two years to determine if it’s consistent and stable. They’ll also look to see whether the amount you’ve earned in the current year is on an upward or downward trend compared to the prior 2 years. Typically, you will need to have at least one full year's history of earning Fluctuating Income to use it for qualifying.
1C. Self Employment Income:
2 Years Personal + 2 Years Business Tax Returns
Whether you’re paid 1099 Income as an Independent Contractor, Schedule C as a Sole Proprietor or any form of K-1 Income as a Corporation, you are considered Self Employed. Below are the baseline requirements but please note that additional documentation for Self-Employed income may be later requested.
2.) Other Income
Other income types may include Social Security, IRA Distributions, Rental Income Annuity Payments, Disability, Child Support, Alimony, Public Assistance, Trust Income, Military Income, and others. Generally speaking, you can provide any form of official documentation regarding the amount, frequency, duration and beneficiary of the income but I will provide more specific details following your application. Rental Income in particular will have certain requirements that we’ll discuss as needed.
Assets
A. 2-months of bank statements from all liquid accounts such as checking and savings that you plan to use towards the Cash to Close. They must include all pages, be fully legible and not contain any gaps.
B. 2-months statements for any other assets you plan to use to qualify for the mortgage. This may include things such as investment brokerage and/or retirement accounts.
C. (Optional) Provide additional asset documentation beyond the basic requirements so we can assess the impact the mortgage will have on your financial goals. You can confirm these assets verbally or in the application if you don't want to provide documentation. Reserve assets may improve your chances of qualifying for certain loan types such as 2nd homes and investment properties. This will also help us strategize for potential future mortgage/real estate opportunities.
Liabilities
A. Your credit report will list and document the liabilities taken into account for Mortgage qualification purposes. You typically won't need to provide any further documentation. However, if there are any liabilities that wouldn’t be reporting on credit, please let us know. These are often liabilities you recently acquired that the credit agencies haven’t reported yet. Other liabilities may include personal contracts, alimony, child support, ETC.
Real Estate Owned
A. Provide your most recent Mortgage Statement for all properties owned (if applicable). If your mortgage statement doesn’t clearly list that taxes and insurance are escrowed (meaning included as part of the monthly payment), you will need to provide your most recent Property Tax Bill and Homeowner's Insurance Policy stating the annual premium.
B. If you own any properties Free and Clear, provide your most recent Property Tax Bill and Homeowners Insurance Policy listing the annual premium.
C. Provide documentation of your annual Homeowner's Association (HOA) fees if applicable.
Identification
A. Provide a photographed or scanned copy of your unexpired Driver’s License, Passport or other Government issued I.D.