In the past, lenders received documentation from borrowers then mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the submitted data. Nowadays, "alternate documentation" is more widely used because of the increased speed and decreased hassles it entails. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.

Lending Bee currently employs alternate documentation processing. The following documents are required for most standardized loans. The requirements differ based on the type of loan you are seeking: a conforming (Fannie Mae or Freddie Mac) loan, non-conforming (jumbo) loan, government loan, or a portfolio loan. While verifications are still mailed out, these are often done for quality control.

• W2 forms for the last two years
• Paystubs covering a 30 day period
• Federal tax returns (1040's) for the last two years, if:
  • you are self-employed
  • earn more than 25% of your income from commissions or bonuses
  • own rental property
  • or are in a career where you are likely to take non-reimbursed business expenses.
• Year-to-Date Profit and Loss Statement (for self employed)
• Corporate or Partnership tax returns (if applicable)
• Pension Award letter (for retired individuals)
• Social Security Award letters (for those on Social Security)

Asset Items

• Bank statements for previous two months (sometimes three) on all accounts. All pages.
• Statements for two months on all stocks, mutual funds, bonds, etcetera
• Copy of latest 401K statement (or other retirement assets)
• Explanations for any large deposits and source of those funds
• Copy of HUD1 Settlement Statement on recent sales of homes (see glossary for HUD1)
• Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
• Gift letter (if some of the funds come as a gift from a family member)
• Gifts can also require:
  • Verification of donor's ability to make the gift (bank statement)
  • Copy of the check used to make the gift
  • Copy of the deposit receipt showing the funds deposited into bank account or escrow

 Credit Items

• Landlord's name, address, and phone number (for verification of rental -if you currently rent)
• Explanations for any of the following items which may appear on your credit report:
  • Late payments
  • Credit inquiries in the last 90 days
  • Charge-offs
  • Collections
  • Judgments
  • Liens
• Copy of bankruptcy papers if a bankruptcy shows up on your credit report or you have filed bankruptcy within the last seven years

Other

• Copy of purchase agreement (if you have already made an offer)
• To document receipt of child support (if you desire to show it as income)
  • Copy of Divorce Settlement (to show the amount)
  • Copies of twelve months canceled checks to document actual receipt of funds

FHA Loans

• Copy of Social Security Card (or other documentation of social security number)
• Copy of Driver's license

VA Loans

• Copy of DD214 - if you were in the military, you undoubtedly know what this is because when you get out of the service they constantly remind you to never ever lose this form.  For those that were not in the military, it is basically a one page summary of an entire military career, including test scores, important dates, awards, and other military data.

Refinances

• Copy of Note on existing loan
• Copy of HUD1 Settlement Statement on existing loan
• Name, address, phone number, loan number of existing loan/lender