In order to place a reservation for housing, you are required to preapprove for a loan with the following mortgage lenders*:
Your mortgage professional will review your finances and provide you with an estimate of how much you can afford to borrow.
*A preapproval with Cornerstone Home Lending or the MOP loan is required. However, you may elect to use another mortgage for your loan.
Here’s a list of the documents and information you can expect to provide through the preapprove process for a loan:
Verification of Income
- W-2s for the most recent two years and pay stubs for the most recent thirty days
Requirements may vary if you are a commissioned sales person or self-employed.
- Most: Tax returns for the most recent two years, including all schedules.
- Commissioned sales person: Tax returns for the most recent three years, including all schedules.
- Self-employed: Personal tax returns for the most recent two years, including all schedules, and business tax returns including all schedules and year-to-date income statement and balance sheet.
- Retired: Proof of retirement income, pensions, social security and other income.
Verification of Liquid Assets
- Copies of bank statements for all accounts for the most recent two months or the most recent quarter, if applicable.
- CD and IRA Accounts: Copy of your statement of account or a letter from your deposit institution on their letterhead listing your accounts with account numbers and present value
- Stock Market or Annuity Investments: Copy of statements from the most recent three months or the most recent quarter, if applicable. If statements are not available, the account number, address, telephone number and contact person for the fund holder will be required for all investments.
If you are presently renting, please provide your landlord’s name, address, and telephone number. If you’ve lived at your current address for less than two years, please provide contact information for previous landlords. Rental history must represent the last two years.
If you have no established credit history, supply the lender with 12 months canceled checks for rent, utilities and other recurring obligations to show payment history and amount of revolving debt.
If part of your down payment or closing costs will be from gifted funds, the following is required:
- A signed letter from the donor stating that you don’t have to repay the gift money;
- Bank statements from gift donor, evidencing funds.
- To streamline the purchasing process, it is important to have the gifted money in your account(s) at least 3 months prior to closing escrow.