Why do we request these documents?
Application/Personal Financial Statement (PFS) — The PFS will give us a better understanding of the borrower’s current financial situation. It also gives us the authorization and information needed to pull credit.
Paystubs, W-2s and Tax Returns — Although we do not base our approval decision solely on the borrower’s financial condition, we need to verify our borrowers have the ability to repay the monthly payments for the term of the loan, without a financial hardship.
Most Recent Bank Statement — We will request the most recent statements to verify liquid assets.
Scope of Work — This document details the work to be performed, the cost, and who will be completing the work. Also needed for the appraiser so they can determine the value of the property upon completion.
Homeowner’s Insurance — Always need to protect both of our interests in the property.
Title Insurance — Required on each loan to verify that the title to the property is clear from any judgments, liens, encumbrances, etc.