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This is a common question that comes up and each situation a borrower might need a little bit more information depending on the underwriters opinion. Here is a general list to go by that will help your home loan or mortgage process go smoothly.

1. A fully executed agreement of sale for the property being purchased

2. A HUD-1 settlement statement on the property you are selling

3. Copy of your most recent pay stub and going back at least 30 days worth

4. W-2’s for the past 2 years, and tax returns (might or might not be needed)

5. Copy of the rental lease, if this applies

6. 4506-T form completed. (This is an IRS form that will be supplied)

7. Homeowner’s insurance policy, you don’t have to provide upfront unless you already have a policy in place.

8. Flood insurance policy if you are in a flood zone.

9. Past 2 years of where you have lived

10. Past 2 years of where you have been employed

*Self employed borrowers will need to also provide: Copy of business licenses or 3rd party proof of business. 2 years worth of Tax Returns. Also, you must have been Self Employed for at least 2 years…..yes you can technically get a home loan or mortgage with less then 2 years self employed BUT, would matter on the time of year and how much you made in the one shortened year you started being self employed. Your profit & loss statement from your business. A letter from your CPA or professional tax person confirming you have been self employed for 2 years.

Who is considered Self Employed?

If you own greater than 25% of a business, the mortgage underwriter will consider you to be self employed.  The underwriter will consider you to be self employed if you file a 1040 schedule C for your job income, are an independent contractor, or your employer does not take out any income taxes.

I hope this helps