What do I need to do to prepare for buying a home or refinancing?

Your Infinity Financial Group loan consultant will do the best job of preparing you for whatever transaction you are doing, however here are some basics that you can do on your own.

Prior to meeting with your loan consultant or signing papers, gather up your income documents. If you are a regular employee of a company you will need to bring a full month of most recent paystubs, the last two years W-2 forms, you’re most recent bank statement and retirement statements, and a copy of a valid, photo ID.

If you are self employed, in addition to a most current bank statement and copy of a valid ID, you will need to provide the last two years, full tax returns, last two years 1099 forms, and a year-to-date profit and loss statement. For all partnerships and corporations, provide the last two years K-1 forms and the last two years business or corporate tax returns.

If you pay or receive any kind of alimony or child support, you will be asked to provide copies of your divorce decree and court order stating the amounts as well as proof of funds for the last 12 months. Through the transaction, if you pay child support, we will have to provide proof that you are current. The easiest way to do this is to have the other party sign an affidavit stating such.

Retired or disabled people will be asked to provide the last two years 1099 forms for any social security or disability pay you receive along with the other required items. If you receive a pension, provide the last two years 1099 forms as well as proof of a three year plus continuance. It’s the same if you receive disability payments, you will be asked to prove a three plus year continuance and the easiest way to do that is a letter from a doctor stating that information.

If you receive rental income from farm ground, rental homes, storage rent, etc., please provide your last two years full tax returns, rental agreements, and 12 months income proof.

If you have been involved with a bankruptcy or foreclosure, you will be asked to provide the discharge papers so the underwriter can determine the dates in order to issue an approval.

When buying a home, in order to submit your loan, we will need to see a copy of a fully executed purchase agreement to start the transaction. Make sure it’s legible and signed by all parties. Also bring a copy of your cleared earnest money check. Purchases also require down payments. Down payments require proof of funds to close and sometimes the source of those funds. If the money is simply in your checking or savings account, just bring in your most recent bank statement. If you are withdrawing it from a retirement account, bring in your most recent full statement of the account and the terms of withdrawal. Some retirement accounts charge a penalty or possibly don’t allow for early withdrawal. If it is a 401K account you are loaning against, we will have to factor that payment in your debt to income ratios. Gifted funds are another method of down payment. This is when a relative gifts money to you for use of down payment. The underwriter will need to see proof that the family member has the funds to be able to gift, a copy of the check (the gift itself), a gift letter (your loan consultant can provide), and proof of the gift being deposited into your account. At the time of closing, you will be required to bring your down payment in certified funds. Examples of certified funds are bank check, money order, or cash.

Any time you are providing any kind of statements, provide the entire statement. For example, only bringing in the first two pages of your tax return or bringing in the first page of your retirement statement won’t be sufficient. Even though the vital information is on these first few pages, an underwriter will assume there is a reason for you only providing certain pages, which will only cause a delay in your loan process.