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Unformatted text preview: rrower provides a copy of a lease. In addition they must supply the address of the property, name and address of the lender, loan number, approximate loan balance, amount of the total monthly payment, gross rental income, and the resale value of the property. This information will be used to complete a Schedule of Real Estate Owned. Verification of retirement income–a photocopy of the award letter (with Copies of canceled check attached), tax returns, or IRS W–2 forms. Verification of Social Security income–a copy of the Social Security Administration's award letter or a copy of the borrower's last 12 bank statements to confirm the regular deposit of the payment. Verification of VA benefits. Most VA benefits are acceptable to most lenders if they are documented by a letter or distribution forms from the DVA and will continue for at least 3 years.
Dynasty School (www.dynastySchool.com) 14-13 8. 9. 10. 11. 12. 13. 14. 15. REAL ESTATE FINANCE
16. Verification of income from notes receivable – a copy of the note to establish the amount and length of payments. Payments must continue for at least 3 years after the date of the mortgage application and must have been received for the last 12 months. If any of the funds used for a portion of the down payment or closing cost and prepaids is a gift, the borrower and/or co–borrower must provide a copy of a gift letter. This letter must be from a family member or an unrelated person who has demonstrated an established personal relationship to the borrower and/or co–borrower who does not relate to the mortgage loan transaction. If a portion or all of the funds for the down payment and closing cost come from the sale of a previous home, many lenders will require a copy of the settlement statement showing the Net To Seller and signed by all parties to the transaction. In some cases they will require a copy of the Grant Deed. If the home has not sold, the borrower will need to provide a copy of the earnest money contract on the home and, upon closing, provide the previousl...
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- Spring '10