Loan Approval Letter

In order to get your offer accepted a comprehensive Loan Approval Letter is imperative.

Key items are needed to show your strengths in the best possible light when negotiating on your behalf when financing will be obtained for your purchase.

Items for a Lender’s Approval Letter:

Every Borrower

  • 2 most recent bank statements for all accounts (all pages)
  • Most recent retirement statements i.e. 401K, IRA (all pages)
  • Personal income tax returns for the last 2 years (all pages)
  • Drivers license
  • Social security card
  • Wage Earners
    – 2 most recent pay-stubs
    – all W2’s that correspond to the tax returns
    Self Employed
    – Sole Proprietors: Year-To-Date Profit and Loss Statement
    – Corporations: corporate tax returns (last 2 years) with 1120 / 1065 forms

Notes and Additional Situations:

Access to Items

  • Keep all of these and incoming paycheck stubs, new bank statement, tax items etc. in one EASY location throughout the transaction, such as a file drawer or in a file on the kitchen counter

Alimony

  • Check or copy

Bankruptcy

  • Complete set of bankruptcy papers
  • Discharge letter

Child Support

  • Check or copy

Divorced

  • Final divorce decree or copy

Non-Citizen

  • Resident alien card or copy of front and back
  • Birth certificate or copy

Real Estate Currently Owned

  • Payment coupons with lender’s name, address, zip code
  • Loan numbers
  • Balances, both original and current

Renting Now

  • Landlord Information: name, address, phone, rental amount

Sale of Another Property

  • Closing statement if closed
  • Escrow instructions if still in escrow
  • Lender letter for buyer purchasing the property if still in escrow

Access to Items
Keep all of these and incoming paycheck stubs, new bank statement, tax items etc. in one EASY location throughout the transaction, such as a file drawer or in a file on the kitchen counter

Alimony

  • Check or copy

Bankruptcy

  • Complete set of bankruptcy papers
  • Discharge letter

Child Support

  • Check or copy

Divorced

  • Final divorce decree or copy

Non-Citizen

  • Resident alien card or copy of front and back
  • Birth certificate or copy

Real Estate Currently Owned

  • Payment coupons with lender’s name, address, zip code
  • Loan numbers
  • Balances, both original and current

Renting Now

  • Landlord Information: name, address, phone, rental amount

Sale of Another Property

  • Closing statement if closed
  • Escrow instructions if still in escrow
  • Lender letter for buyer purchasing the property if still in escrow

VA

  • Verteran’s nearest living relative’s name, address and phone number
  • DD-214 (VA form)
  • Certificate of Eligibility
  • Aarriage license if married