What Lenders look for

EMPLOYMENT: Generally at least 2 years at the same job or in the same type of work. If self-employed, must be 2-3 years as self-employed, show a business license, business name and separate business phone, that is answered as a business. Job changes from Employed to Self-employed require 2 years as self-employed. Going from Self-employed to Employed (W2's) in the same line of work is easier, but you won't get credit for the self-employed part, unless you can prove you are still getting income (taxable) from it.

INCOME: Based on paycheck stubs and tax returns and verified by the employer. For the self-employed, complete tax returns with all schedules and a current profit and loss statement (could require audited Profit and Loss Statements, and may require income averaging). Stated Income Loans do not require proof of income, but the job will be verified and the income must make sense. (See Employment) Income from other sources must be verified.

CREDIT: A good credit rating on closed accounts, open accounts showing a good payment history. (If an existing mortgage is involved, it must be current and have a good payment history). Public records are checked for judgments, pending litigation, and bankruptcies. The ability to save money, as well as repayment of the loan, are credit decisions.

PROPERTY: Must show pride of ownership and be reflective of the location. The bottom line is, lenders make the final loan decision based on "What if we have to take the property back".

B. BE PREPARED. You may need to provide at least the following:

• Copy of recorded Grant Deed/Quitclaim Deed (if possible).

• Copy of ALL Trust Deeds and Notes. MUST HAVE THE NOTE ON THE 1ST TD , if the lender is arranging a 2nd TD, and/or ALL Senior Noted/Trust Deeds.

• Four weeks CURRENT Paycheck Stubs. Other sources of Income: (Social Security/Pension/Retirement Income - MUST have a copy of the Granting Letter).  Child Support-Must have a copy of the Interlocutory Decree and Final Judgment Decree - with at least three years remaining, and a twelve-month documentation history of receiving such income.

• Two years W2,s and/or 1099's and Complete 1040's (including K1's-if any) and ALL Supporting Schedules.

• Copy of ALL NOTES and INVESTMENTS that are used for INCOME. (MUST HAVE AT LEAST 3 YEARS REMAINING)

• Copy of ALL Leases and Rental Agreements used for INCOME, in most cases the SUBJECT PROPERTY must be OCCUPIED, for the lowest rate and best terms.

• Copy of CURRENT Homeowner's Insurance Coverage-WITH AT LEAST 6 MONTHS REMAINING COVERAGE.

• CONDO's/PUD's: CC&R's, Article's of Incorporation, By-Laws, Budget and Master Insurance Coverage (with a Fidelity Bond). Condo Certification Letter.

C. ADDITIONAL DOCUMENTS FROM SELF-EMPLOYED APPLICANTS:

• Two years COMPLETE Partnership and/or Corporate Tax Returns .

• Computer Prepared Current Profit & Loss and Financial Statement - Not over 90 days old. (Audited Profit and Loss Statements may be required and may also require income averaging)

YOUR LOAN-TO-VALUE, LOAN AMOUNT, CREDIT, INCOME, AND/OR ASSETS may determine which of the above, if any, may or may not be excluded or may need further documenting - DEPENDING ON WHICH LOAN PROGRAMS ARE AVAILABLE, not all loan programs are available in all  states. The above are guidelines only and are subject to change depending on loan program qualifications.

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