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Loan Preparation

Neighborhood Lender makes what is typically an overwhelming and complex process an easy and straightforward experience for their customers. To make it an even easier process, make sure to collect all of the following documents to better prepare for a home purchase or refinance.

Income Documents

Tax history is required:

  • Two years of tax returns for self-employed borrowers
  • Two years of W-2's for non self-employed borrowers
  • Complete tax returns and your last 30 days of pay stubs for self-employed borrowers

One month of paystubs are required:

We will need to perform a verification of employment (VOE), so please provide phone numbers for the human resources office at each of your employer’s during the last two years.

Asset Documentation

Cash for Closing:

You'll need to prove that the money you have has been yours for at least 60 days, so you will need to provide three months of bank statements. If the money has not been in the bank, you will need documentation on where it came from — deposit or withdrawal slips, money transfer documentation, or a gift letter if you receive the money from someone else.

Reserves:

Depending on your loan program, you will need to show proof of anywhere from one to six months of mortgage payments available as liquid assets. This proof can be in the form of Bank Statements (two months) or a 401k Statement.

Proof of Insurance

Required documents:

We will need a copy of the page of your homeowner's policy showing the account number and the declarations. This will be used to determine if the policy is paid up to date and the amount required for your escrow account, should you have one in addition to determining whether you qualify for the mortgage.

Taking cash out?

The policy will need to be insuring your home for at least the amount of your new mortgage.

Don't worry about the additional insured portion of the policy for your mortgage holder. We will notify the agent of your new lender prior to the closing.

Current Loan Documents

Required documents:

  • A settlement statement from your last closing
  • Proof of current title insurance policy in order to receive a reissue date
  • Your mortgage statement from your current lender

Purchasing a new property?

If you are purchasing a new property and don't have a current loan, you will need to provide a copy of the sales contract.

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Have more questions about loan preparation?

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Why Neighborhood Lender?

We are dedicated and committed to our customers.