Proper documentation is required to support your application.
Below are tips to ensure the information you provide is complete and accurate. Additional documents may be required based on your individual situation. Your Spark Mortgage Consultant will alert you if additional information is needed.
Pay Stub: Documentation must be dated within 30 days of the application and must contain: Most recent 30 consecutive days of pay (This may require you to provide multiple pay stubs if paid weekly, bi-weekly or semimonthly) Year-to-date earnings. Your name and employer’s name. Your base salary or an hourly rate if paid on an hourly basis.
W-2s: Should reflect income for all employments during the previous two years.
Tax Returns: Should be provided for the last two years, including all schedules.
Self-Employment Income: Must be documented by providing the previous two years’ personal and business tax returns. Tax returns should include the following:
- All schedules, including the business returns
- A signed and dated 1040
- When required, a copy of the most recent quarterly or year-to-date profit-and-loss (P&L) statement, signed and dated
Bank statements: Including investment and retirement accounts, should:Include the most recent two months’ statements, or the most recent quarter for quarterly statementsClearly, show the name of the account holder, bank’s name and address, account number, beginning and ending balance, and all deposit and withdrawal activityContain all pages; even if they are blank (otherwise the statement will appear incomplete).
Gift funds: From a relative, fiancé/fiancée or domestic partner can be used for a portion of the down payment or closing costs when eligibility requirements are met. Information about gift funds is required to verify the source and purpose of the funds and to meet eligibility requirements. A gift from any other source or a gift with repayment requirements may impact loan eligibility. A gift letter is required and must include specific information to meet gift eligibility requirements. Your Mortgage Consultant will let you know what other details should be included in this letter.
Sale of an existing home (for purchase transactions only): A fully executed Purchase Agreement and HUD-1 Settlement Statement for the home you are selling
Opening of a new bank or credit account prior to or during the loan process may result in requests for additional documentation. If you have opened or need to open a new bank or credit account within 30 days of applying for a home loan or anytime during the loan process, please notify us and provide a letter of explanation detailing the circumstances.
Letters of explanation: Letters of explanation may be required as a condition of loan approval, and can be used to provide additional detail on your application, credit report or documentation. All letters of explanation must reference the instance (please be as specific as possible) and must be signed and dated.
- Employment history inconsistencies among your credit report, loan application and/or income documentation information
- Employment history gaps appearing on your loan application
- Name variations on your credit report
- Derogatory credit; please be sure to detail what caused it to occur and steps you have taken to prevent future occurrences
- Address inconsistencies between your credit report and loan application
- Credit inquiries reflected on the credit report; each inquiry must be explained, and any new credit obtained as a result must be disclosed
- Overdrafts occurring in your bank account
- Bank account deposit activity that is inconsistent with paycheck deposits or other prior activity in your bank accounts. Any recent large deposits inconsistent with your account history must be disclosed and explained
- Additional supporting documentation may be required
- Source of funds for recently opened asset accounts.
8 Ways To Accidentally “Un-Approve” Your Mortgage
Keeping “good behavior” in mind, here are 8 things you should absolutely not do between your date of application and your date of funding.
- Don’t buy a new car or trade-up to a bigger lease
- Don’t quit your job to change industries or start a new company
- Don’t switch from a salaried job to a heavily-commissioned job
- Don’t transfer large sums of money between bank accounts
- Don’t forget to pay your bills — even the ones in dispute
- Don’t open new credit cards — even if you’re getting 20% off
- Don’t accept a cash gift without filing the proper “gift” paperwork
- Don’t make random, undocumented deposits into your bank account.