What documents are needed for your Maine Home Loan?

Document Checklist and Instructions

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

Complete and sign the residential loan application, Form 1003, and the attached loan info sheet, credit authorization and fair lending notice. Page 4 of the application is a continuation page in case you need additional space for your assets or liabilities. If you make a mistake while filling out the application cross it out, and make a change. Do NOT use whiteout.

If you are salaried: provide W-2’s for the previous two years and one month of paystubs. If you are self-employed, provide tax returns for the previous two years, including all schedules, and a YTD profit and loss statement. (Note: provide copies of all requested documents. Do not provide original documents.)

If you own rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules.

To speed up the approval process, provide bank statements for the most recent three months, and recent statements for stock, mutual funds and IRA/401K accounts.

If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds.

If applicable, provide a copy of your divorce decree and settlement agreement.

If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.

If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.

If you are applying for a home equity line of credit or loan (second loan), also include your first mortgage note. (This should be with your closing loan documents.)

By providing all documentation early, you make your mortgage specialist job much easier and ensure there are no  issues before closing.

How can you remove your PMI on your Maine Home Mortgage Loan?

PMI REMOVAL

Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan – whether through market appreciation or principal paydown – dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.

Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you with a statement regarding the home value. Some will even take the next step and help you file a challenge with your maine mortgage company. The costs of these services are very often recovered in just a few months of not paying the PMI.

If you would like more information on removing your PMI please contact me anytime.

Be prepared – documents you’ll need to apply for a mortgage

When applying for a Maine Home Loan, it’s very important to start putting together all of the documents needed to be approved for your loan.  Long gone are the days of no doc/limited doc home loans.  Borrowers now must provide much more information to prove to your Maine Mortgage Specialist that they do qualify for a new purchase or refinance transaction.  Here is a simple checklist of documents you will need when applying for a new Maine Home Loan.

Refinance and Purchase

_____Last Two Pay Stubs, Borrower and Co-Borrower

_____Last Two Months Bank Statements (Originals, All Pages, not off the internet)

_____Most Recent Asset Statements (Money Market. 401K, etc Originals, All Pages)

_____Last Two Years W-2s, Both Borrowers

_____A Copy of Your Driver’s License, Borrower and Co-Borrower

_____A Recent Utility Bill(s), Showing Borrower and Co-Borrower on the Bill

_____Last Two Year’s Tax Returns, Federal Returns Only, All Schedules

_____Corporate Tax Returns and K-1s if Applicable

_____Copy of Borrower and Co-Borrower’s Social Security Cards

_____A Recent Mortgage Statement

_____A Recent Tax Bill

_____A Recent Homeowner’s Insurance Bill and Policy Number or

_____The Name, Address and Telephone Number of Your Insurance Company

_____A Copy of the Deed

_____Statements for All Debts Being Paid Off at Closing

Purchases Only

_____Listing Sheet

_____Deed

_____Purchase & Sale Agreement

_____Gift Letter

Mortgage lenders require borrowers to provide documentation to verify identity, property information, income and equity/down payment. These documents are known as conditions that the borrower must satisfy in order to receive a full-fledged mortgage approval (up until that point, the mortgage that you are offered is referred to as a “conditional approval”). When you are asked to provide certain documents – such a job letters, purchase contracts or bank statements – it’s important that you provide complete and accurate documents in a timely manner.

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