Document Checklist for Loans

When you apply for an Arizona mortgage loan, you will need to have several types of documents ready for your lender. Read on for an explanation of the documentation requirements for different loans and helpful document checklists.

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Document Checklist: Buying
or Refinancing a Home

Here are the documents you will need if you are taking out or refinancing a mortgage loan in Arizona:

If you earn a salary, you will need one month’s worth of pay stubs and your W-2s for the last two years. If you are self-employed, you will need your tax returns for the past two years and a YTD profit and loss statemen

Copies of any stock brokerage or IRA/401k accounts you have.

A copy of divorce decree or bankruptcy papers if applicable.

If you own rental property, you will have to provide rental agreements and two years’ worth of tax returns.

Statements for the last three months for every bank, stock, and mutual fund account you have.

For cash-out refinancing customers, you must provide a letter detailing what you plan to do with the proceeds.

For non-citizens, a copy of your green card or an H-1 or L-1 visa if you are not a permanent resident.

Documentation Requirements by Loan Type

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Full document loan

The most common type of loan documentation. Most lenders require the borrower’s last two pay stubs and W-2s for the last two years.

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No income verification, no ratio

No income documentation required. Also known as an “NIV” loan.

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Stated income and state asset loan

This type of Arizona mortgage loan is used when income cannot be documented. Self-employed borrowers or those who work on commission may have to apply for stated income loans.

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No documentation, no employment verified

Employment, income, and assets are not verified with this loan. Approval is based on credit and the appraisal of the property.

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Self-employed and commissioned income loans

Self-employed or commissioned borrowers usually take out a no income verification or stated income loan.

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Bank statement loans

With some Phoenix area lenders, a bank statement is considered a full document income loan. With this type of loan, the deposits made into a bank account over 6, 12, or 24 months are averaged to determine monthly income.

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Recent college graduate loans

The lender uses the borrower’s school transcripts to verify employment history as long as current employment is in place.

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Document Checklist: Home Equity Loans

The documentation requirements for Arizona home equity loans are identical to those of traditional mortgage or refinancing loans with a few exceptions. For one, you must provide a copy of the note on your first mortgage. You can find this information in your closing loan documents. Additionally, you must present a signed letter detailing what you plan to do with the loan proceeds. If you have additional questions about the documentation requirements for equity loans in Tucson, Phoenix, Scottsdale, Flagstaff, or other areas of Arizona, one of our loan consultants will be happy to assist you.