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Refinance Checklist

  1. Send in these items as soon as possible, same day or next day will allow us to meet deadlines.
  2. These items are required by government agencies such as: Fannie Mae, Freddie Mac, FHA or VA, not Capital Bank.
  3. PDF file format is fine, images/JPEG/phone pictures are not allowable.
  4. Upon the underwriting of the documents you provide, there may be additional items required.
  5. A credit alert you see for an inquiry by Settlement One or United One are credit bureaus that we use.

Income Documentation if Salaried

  1. Copies of your most recent W-2 forms from the last two years.
  2. Copies of two of your most recent, consecutive pay stubs: The pay stubs must clearly show the pay period and must identify the full name of the applicant. Send in updated pay stubs as you get them. If there are any deductions on the pay stub for a loan, that loan will have to be counted towards the debt ratio. If there are any deductions on the pay stub that go towards the deposit of a 401k or some other asset account, a copy of a recent bank statement to show that asset is needed.
  3. If you receive bonus or commission income we will need copies of end of year pay stubs from the end of the last two years, that will break down how much income was from bonuses or commissions each year, so we can compute the required two year average.
  4. A name and phone number are needed for a “verbal verification of employment.” We are required to call an immediate supervisor or human resources person to verify ongoing employment.

Income Documentation if Self-Employed

  1. Copies of federal personal tax returns from last two years. All pages of each return are needed if you are self-employed, earn commissions, earn dividend & interest income, or own rental property.
  2. Print the signature page of the tax return which is usually the second page and sign and date it in ink, with the current date, at the bottom of the page where you would normally sign.
  3. Corporate tax returns for the last two years will be needed as well as personal returns if the self-employed individual owns over 25% of a company. By the same token, if the borrower owns more than 25% of a Partnership, then complete Partnership returns from last two years as well as complete individual returns are needed. The Partnership returns should have the K-1 forms attached.
  4. Profit & Loss statement through most recent month (only if self-employed or commissioned. A P&L shows gross income, then expenses, then net income from the start of the year through the most recent month). The Profit & Loss Statement must be signed by the preparer (the preparer can be the borrower, or the borrower’s accountant). Click here for a sample profit and loss statement.

Other Income Documentation

  1. If the borrower derives income from Retirement or Social Security you need evidence of receipt of this income. Provide a copy of three months bank statements with all pages of each statement, showing direct deposit of this income.
  2. Discuss any other source of income you may have that has not already been discussed, no matter how small. Other income that need to be discussed can include a “side business”, a business that makes very little money, a business that only has small losses, any business in which you are a minority owner, part time jobs or consulting jobs.
  3. A copy of a current lease on all rental properties owned. If there is no current lease and the tenant is just renting month to month you can get what is called a “tenant letter.” The tenant must write a letter stating they are currently your tenant, how much they are renting for, and the address of the property they are renting. This letter must be signed by the tenant.

Asset Documentation

  1. To read about important information regarding why it will be likely that other supporting documents will be needed as a result of deposits on your bank statements click here.
  2. Copies of 2 most recent, consecutive bank statements: If any of the bank statements show large deposits that are not payroll deposits, the source of those deposits should be documented (For example: gifts, inheritance, transfer of $ from another account, liquidation of stocks, etc.). Fannie Mae and Freddie Mac require a full paper trail on where these deposits originated, copies of checks, deposit slips, etc. If any of the bank statements have more than one page, a copy of all pages are needed, even if the other pages don’t show anything important or are blank. Depending on how long the transaction takes you may need to send in updated statements as you get them.
  3. Copies of the 2 most recent statements (or most recent quarterly statement) on any other assets (like stocks, CD’s, 401k, IRA, etc.). If these assets are going to be liquidated or borrowed against for settlement evidence of that is needed. We will also need evidence of the deposit of the funds into the new account (such as deposit slips and copies of the check). If any of the bank statements have more than one page, a copy of all pages, even if the other pages don’t show anything important or are blank, are needed. Depending on how long the transaction takes you may need to send in updated statements as you get them.
  4. For all account statements, screenshots without any identifying information cannot be used. Do not blackout or scratch through any information. And documents cannot be cut off on any side.

Other Documentation

  1. Do not make any large purchases, open a new credit card account, pay down a large amount of debt, or make any large financial changes from loan application through settlement. If a job change is imminent please advise us. Any sudden financial moves may cause a problem with your debt ratios or your credit score. To read about important information about this click here and click here.
  2. Discuss any expenses you have that have not already been discussed. Expenses that need to be discussed and documented can include property taxes and homeowners insurance on property which is mortgaged or owned free and clear, unreimbursed business expenses, alimony and/or child support, child care expenses need to be disclosed only on a VA loan, tax liens in a repayment plan, and deferred student loans no matter how long the deferment is.
  3. For Jumbo loans only please provide a legible copy of a driver’s license for each borrower on the loan is needed.
  4. If you have a Home Equity Line or a 2nd trust provide a copy of your “Mortgage Note” from that obligation.
  5. Copy of all pages of a *Divorce Decree and Separation Agreement* if divorced or separated.
  6. If the borrower is not a U.S. citizen please send a copy of any Visa or Permanent Resident Card.
  7. If the property is in a Trust, copies of all pages of the trust agreement will be required.
  8. If any borrower will be out of town for settlement, please advise us in advance and we can discuss if getting a Specific Power of Attorney Attorney for someone else to sign the closing documents for them.
  9. If your property is a condominium, banks require a condo questionnaire to be completed, and most property management companies charge a fee to complete this, which can range anywhere from $100 to $250. We will alert you as to what this fee is and collect it from you later. We will need the name and contact information for the property manager of the condominium.
  10. Do you have a preference for a title company to use, perhaps the title company that did the title work when you purchased the home? Please email Brian and let him know, otherwise Brian can give you a referral.

Homeowners Insurance/Inspections

  1. Please provide us with the name and phone number of your homeowners insurance agent. We will provide them with the name of the new lender, who must be listed as the new mortgagee on the policy. Also, the policy will need to be reviewed to ensure there is still sufficient coverage.
    If you are refinancing a condominium, the insurance is part of a “Master Umbrella Policy” that covers the whole building. If you would provide us a name and phone number for the property management company of your condominium we will get this information from them.
  2. There is also a Fannie Mae requirement for HO6 insurance, which you can read about by clicking here: HO6 Insurance. It will be required that you pay your HO6 insurance in an escrow account with the mortgage payment.
  3. A termite inspection is usually not required on refinance loans. However, if one is needed you will be notified as soon as possible.

Submission of Documents

  1. As stated previously, more documentation may be needed. An underwriter may see something in the loan that they feel requires more explanation. Or Fannie Mae, Freddie Mac, FHA or VA may make sudden changes to their requirements that impact the documents needed on your loan application.
  2. You will receive loan disclosures which must be returned same day/next day. Federal rules say we cannot order the appraisal without the signed disclosures, so we have to have them back immediately to ensure we meet deadlines and make the required settlement date before the “lock-in” expires.
  3. These documents will be securely uploaded within our application when you start our application process.
  4. Please upload PDF’s of the pertinent supporting documents, do not upload camera phone pictures, TIFF’s, JPEG’s or other file formats.