San Francisco Ca, As you have heard, basicallyâ€¦EVERYWHERE IN THE MEDIA, lenders require A LOT of documentation to close a loan when purchasing or refinancing a home in this day and age. Loans are definitely fully documented and without question YOUR BEST DEFENSE IS A GREAT OFFENSE!
That being said here is what you must have prepared with your lender and agent when prepared to write offers:
Â· A Cover Letter â€“ Tell your story and make sure your lender know your story.Â Donâ€™t forget to include any skeletons dangling in your closet, collections, alimony, child support or unpaid IRS liens.Â Paint a pretty picture but explain any skeletons.
Â· A completed loan application â€“ review for accuracy.
Â· If you own property already tie all mortgages from your credit report to your properties.
Â· If you own property already submit mortgage statements and proof of insurance and property taxes.
Â· Tri Merge Credit report â€“ your lender will pull this.Â Get a copy, donâ€™t pull your own.Â Especially if you are writing on bank owned properties. Most bank owned properties want you pre approved with their institution.Â That means if you go out and look at offers on 5 houses owned by 5 different banks you may have 6 credit checks!Â Keep them to a minimum.
Â· Photo ID.
Â· Income documentation â€“ 1 month paystubs, 2 years w2â€™s, 2 years complete tax returns, and business returns if the borrower owns more than 25% of a company.
Â· Earnest money deposit receipt, copy of check and proof cleared borrowerâ€™s account.
Â· Â Most recent months bank statements or (Per AUS findings).
Â· Â Provide letter of explanation for all large deposits (Anything Greater than 10% of gross monthly earnings must also be documented) including paper trail- cancelled checks, corresponding bank statements, etc.
Â· Gift Letter and Paper trail: Gift Letter, Donors ability to gift and transfer from donor to borrower with final balance in account.
Â· Contract fully executed.
Â· Short Sale approval.
Â· Copy of any inspections and clearances (Per contract or appraisal).
Â· Preliminary Title Report (Usually received 2 days after escrow is opened).
Â· HOA certification form and copy of Master Liability Policy and Insurance Policy for a condominium.
While this may sound a little overboard this is exactly what is needed upfront to close FAST in todayâ€™s market. For more information on getting pre approved for your California home loan text or call 510.282.5456, or email us at email@example.com