DOs AND DON’Ts WHEN PURCHASING OR REFINANCING REAL ESTATE
There are certain guidelines we must follow to ensure a smooth, hassle-free transaction. When you follow these simple rules, your purchase will be as delightful as you imagined and hoped for.
If you have any questions about any of the items below please let me know. Keep in this mind that there may be some items not listed. There may be other particulars involved.
DO…
1. Keep all pay stubs
2. Keep all bank, stock, retirement statements – ALL PAGES
3. Keep all bank receipts and deposit slips
4. If you plan to open any new asset accounts, keep opening deposit slips as well as
documentation on where money is originated
5. Prepare to have a Homeowner’s Insurance company picked out
6. Once your earnest money deposit has cleared your account, request a letter from your
bank verifying your earnest money has cleared or get a copy of both sides of the check
7. Notify us of any change in your financial status (job change)
2. Keep all bank, stock, retirement statements – ALL PAGES
3. Keep all bank receipts and deposit slips
4. If you plan to open any new asset accounts, keep opening deposit slips as well as
documentation on where money is originated
5. Prepare to have a Homeowner’s Insurance company picked out
6. Once your earnest money deposit has cleared your account, request a letter from your
bank verifying your earnest money has cleared or get a copy of both sides of the check
7. Notify us of any change in your financial status (job change)
DO NOT…
1. Shop with credit cards
2. Apply for new credit
3. Allow inquiries on your credit report
4. Purchase a new vehicles
5. Transfer money between accounts frequently
6. Deposit any money that can not be verified as yours
7. Deposit cash of more than $300.00 into your accounts if it cannot be documented
8. Sell any personal items without bill of sale and title transfer
9. Deposit any funds without copying check 1st, including gift funds
DOCUMENTS YOU WILL NEED FOR YOUR MORTGAGE APPLICATION
All may not be applicable to your scenario
2. Apply for new credit
3. Allow inquiries on your credit report
4. Purchase a new vehicles
5. Transfer money between accounts frequently
6. Deposit any money that can not be verified as yours
7. Deposit cash of more than $300.00 into your accounts if it cannot be documented
8. Sell any personal items without bill of sale and title transfer
9. Deposit any funds without copying check 1st, including gift funds
DOCUMENTS YOU WILL NEED FOR YOUR MORTGAGE APPLICATION
All may not be applicable to your scenario
*W2s and/or 1099 for the last 2 tax years
*Federal Tax Returns for the last 2 years including all schedules
*One month current pay stubs reflecting year-to-date earnings. If your pay stubs do not have
year-to-date earnings please have your employer write a letter on business letterhead with your year-to-date earnings. If you do not receive pay stubs, make a copy of your check and have your employer write a letter on business letterhead with your year-to-date earnings
*Letter explaining Gaps of Employment
*Check stubs or copies of checks for Social Security Benefits, Retirement or Pension and/or Disability
*Copy of Award Letter(s) for: Social Security, Retirement or Pensions and/or Disability
*Evidence of Child Support and/or Alimony payment received. 12 months cancelled checks or last 12 months bank statements showing Child Support clearing your account or payment history for the last 12 months from the Clerk of the Court. AZ – 602-606-1900 for more information
*Last 2 months bank statements for all your accounts – you will need ALL pages even if they are blank. If you do not have bank statements go to the bank and get a print out signed with a business card attached
*Evidence that your earnest money cleared your account. Copy of Both sides of cleared check or you can go to the bank and get a signed print out showing the earnest money cleared your account, have the bank representative sign and attach a business card
*Explain and document any large deposits other than payroll
*If your bank account shows NSFs or negative balance you will need to provide a letter of explanation
*Gift Funds: Have the donor complete the Gift Letter (I can provide to you) Have the donor purchase a cashier’s check made out to you Title Company. Have the teller type a letter on bank letterhead that the gift was withdrawn from the donor’s account. Make a copy of the cashiers check, the deposit with the title company
*Letters of Alternative Credit (IF you do not have at least 4 lines of credit open w. 24 month history) Examples:Letter from utility company – SRP, APS, phone company, car insurance, cell phone, a vehicle paid through a 3rd party. The letter will need to state that you have paid your account on time for the last 24 months.
*Proof that any collections or judgments on your credit have been paid
*Letter of Explanation for any late or delinquent credit
*Copy of Full Bankruptcy papers including Discharge papers
*Letter why you filed bankruptcy or foreclosure
*Letter Explaining any ‘undocumented income’
*Name, Address, phone # for your Home Owners Insurance Agent
*Copy of Settlement Statement (HUD-1) from the sale or refi of your home
*Copy of Purchase Contract for the home you are purchasing
*USA Patriot Act Consumer Identification – you will need your current (unexpired)
Driver’s License or Passport or State ID or Military/Government ID
*Date of Birth for all Borrowers
*Copy of Social Security Card
*Permanent Residence Card and/or Work Permit and/or I-94 and/or Passport
*Name, Address and phone number of landlord in the last 24 months
Equal Housing Opportunity. This material is based on information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete and should not be relied on as such. This offering is subject to errors, omissions, change of price or withdrawal without notice.