March 16, 2010 by MSI
Over the past few years, federal lending requirements have changed dramatically. Long gone are the days of merely stating assets to a potential lender. In today’s marketplace, when
applying for a loan it is important for transferees to understand what will be expected of them and what they need to do to ensure that their loan process is as smooth as possible. Working to secure a home loan in today’s economy, regardless of whether it’s a local or national lender, transferees will need the following documentation*:
- Two (2) months of the most recent bank statements (all pages – even if they are blank) as well as any documentation proving the source(s) of any large deposit(s) into the account(s)
- Two (2) years of W-2s (in most cases tax returns are not required)
- Thirty (30) days of their most recent pay-stub(s) with year-to-date earnings listed
- All of their most recent financial statements (all pages, even if they are blank) inclusive of 401K statements, Money Market Account Statements etc.
- Loan information on any real estate that is being retained including mortgage statement, tax and insurance bills (if they are not held in escrow)
- Copy of the HUD on their home sale (if applicable)
Additionally, as a transferee, it is vital to keep track of all monies and assets that are being moved amongst various accounts. Lenders are not simply looking to verify that you have sufficient assets. Instead, they are looking to verify that all of the money is from an acceptable source. Transferees are regularly paying for relocation expenses and later being reimbursed by their company, because of this constant variability of assets, it is that much more important to track and make copies of all reimbursements and transactions between themselves and the company.
A good rule of thumb is to make and keep copies of any and all asset statements, including a paper trail of all deposits going into the accounts. Given the global economic transition over the past few years, it is important to understand that these new requirements are the new standards industry wide and are not the exception, but rather the rule.
* Subject to change.
75ff0fb1-4df8-4e15-a7ef-9caa3dab261e|0|.0
