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Steps to getting a mortgage

The following is a comprehensive list of documents that are needed to complete a loan application, from Derek Prickett of Amerifirst. You can apply online and get contact information by clicking on his name, should you require a lender or a competitive quote.

It’s good to start as soon as you are thinking about looking for a home. Derek can advise you on how you can raise your credit score a few points - even when your score is great, a few points can save you money. This can take a month or more.

The following may look like a daunting list; however 1-5 are needed for a full pre-approval, which will make your offer stronger, and then items 6 and 7 once you are under contract.

Derek adds:

“The next section you only need to send if it pertains to you. These are the same items that all lenders need to process a loan, not items specific to Amerifirst. We have found that if we get these things up front, the second list after the file has been underwritten should be very short, if we even need anything at all. If it is easier to send copies via UPS rather than digitally, please request a UPS label and we will gladly send one to you.”

Items required from everyone are at the top of the list. Beginning with #8, read each title to see if the item is applicable to you individually. Ignore if it does not apply to you.

  1. Drivers’ License, Passport or other Gov’t ID

  2. 30 days’ worth of consecutive paystubs (make sure it is a full 30 or more days). This needs to be an actual paystub including the name of the Employer, Year-to-date totals, etc.

  3. 2 years’ personal tax returns with all schedules (state tax returns are not necessary)

    1. We need a copy of your current filed returns or proof of extension if closing after April 15th.

    2. If you were required to pay, please send proof of payment to the IRS.

  4. Most recent past 2 years or W-2s, 1099s, and/or K-1s (need current W-2 and 1099 for loans closing after February 15th)

  5. Bank Statements-Need full statements for last 60 days, all numbered pages even if blank. Please send full statements, not a transaction history printed from the computer. You can “print to PDF” from your banking site online or you are welcome to stop by and we can help you print full statements, if that is easier. Otherwise, we find that names, account numbers, and/or balances are missing and the underwriter will still need to see a statement.

    1. Please note that if there are any large deposits on your statements (totaling more than 50% of your monthly income and not direct deposit items), we will need to “source” those deposits. If there are any, send any deposit slips and or check copies you have. If you do not have these, the bank can provide copies. Also, please remember to make copies of any large deposits you make until after closing.

Once under contract please send the following ( your agent or agent’s transaction manager will facilitate these steps):

  1. Copy of cleared Earnest Money and/or Due Diligence checks along with statement or transactions history showing balance after clearing. Transaction history will need to have a date range from date cleared back through date of last statement we have to show a running balance. We need to show that this has cleared in order to give you credit towards the purchase price.

  2. Home owner’s insurance, please let us know the contact information for your insurance agent as soon as you can. Once you have chosen a policy that works for you, they will need some information from us to get the binder completed. You do not have to pay for it now, but we need to know what the premium will be and have the declarations page for the underwriter to review.

Please send any of the following if it applies to your specific situation:

  1. Retirement income

    1. Pension-Will need letter from Pension Administrator stating monthly amount and how long it will continue.

    2. Social Security-need current year statement showing what you will receive in the current year. If you do not have a copy, this can be accessed at the following link,

    3. VA disability-need letter from VA stating current amount received. If you do not have this, it can be accessed at this link,

  2. Reserve Assets-If you are using 401K or IRA for reserve assets, we will need the Terms of Withdrawal to show that you will have access to the funds if needed and what any potential penalty and tax consequences will be.

  1. Down Payment from account other than checking/Savings (needs to be available 2 weeks before closing):

    1. if gift, need gift letter (we will provide) copy of cleared gift check or wire transfer confirmation, deposit slip and statement or transaction history showing funds in your account

    2. If from IRA, 401K, or other tax-deferred account, will need statement from originating account showing funds being transferred or debited, and the statement showing the liquidated funds being credited into an account for closing (checking, savings, or Money Market account) or confirmation of wire to closing attorney office. We will also need terms of withdrawal for the account.

    3. If from investment account: will need statement from originating account showing funds being transferred or debited, and the statement showing the liquidated funds being credited into an account for closing (checking, savings, or Money Market account) or confirmation of wire to closing attorney office.

  2. Down payment from pending sale of real estate:

    1. Need copy of contract, Need attorney contact for that transaction (so we can request Preliminary Closing Disclosure),

  3. Joint bank accounts with person not on mortgage loan: need a letter from them stating you have full access to all funds in the joint account(s)

  4. Additional Real Estate Owned-Statements for Mortgage, Taxes, Insurance and HOA, if applicable. Each needs to show the property address and annual or monthly fee. Copy of lease and security deposit, if converting existing home to a rental home.

  5. Divorce-If you pay or receive alimony, need documentation stating how much and length of time

    1. If currently separated, we will need a copy of the separation agreement or a “Free-Trader” agreement

  6. Child Support- If you pay or receive Child Support, need documentation stating how much you receive or pay and length of time.

  7. Self-employed: 2 years’ tax returns showing SE income. If business is incorporated or and LLC, we K-1s, if you own 25%or more of the business, we need 2 years’ business tax returns. We will need a “year to date Profit & Loss statement” so that the underwriter can see if the income is looking like it is increasing or decreasing. I have a simplified format if you need one and can help you fill it out. If any down payment funds are from business bank accounts, we will need 60 days’ worth of full statements

  8. Bankruptcy, Foreclosure, or Short Sale-Need Bankruptcy discharge papers or Foreclosure Deed or Short Sale Settlement Statement. If you do not have a copy and cannot get one, we will need to know where the case was filed or so that we can try and help you get copies. We will also need a letter explaining circumstances that led to bankruptcy, Foreclosure, or short sale.

  9. VA loan Application: Please send your DD214 and the contact information your nearest living relative.

  10. Student Loans: Provide statements for any student loans that are in deferment or are currently on an income-based repayment plan. The underwriter will need to confirm the terms you are currently paying and when those terms will end.

  11. Living Rent Free letter: If you are living rent free and are using a government loan, please have the person you are living with sign a short letter stating that this is the case.


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