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Wayne's Real Estate Tips
Helpful Articles and Tips from Wayne Newsom
800-726-1405 or 970-586-4425

Credit Application

Definition of Credit Application
A request for an extension of credit, either orally or in written form. The request must follow the lender's extension request procedures in order to be valid. The application must legally contain all pertinent information relating to the cost of the credit, including the annual percentage yield (APY) and all associated fees. Regulation Z of the Federal Reserve governs the credit application process.

ITEMS NEEDED FOR A CREDIT APPLICATION
     To be furnished by the Applicant:
          EMPLOYMENT:

  • Driver’s license
  • Addresses of past two years’ residence
  • Gross monthly income
  • W-2’s from all employers during the past two years
  • Proof of pensions, retirement, disability or Social Security
  • Proof of income from rentals, investments, etc.
  • Proof of child support or alimony paid/received
  • Year to date paycheck stub or one month’s recent pay stub

IF SELF-EMPLOYED:

  • Two years 1040 Tax Returns
  • Current year Profit & Loss Statement

CREDITORS:

  • Each creditor’s name and type of account
  • Monthly payments and approximate balances

BANKING

  • 3 months statements for checking account
  • 3 months or one quarter statement for all accounts used for earnest money or closing
  • 1 month’s statement for other investment and retirement accounts

MISCELLANEOUS:

  • List of assets in land and other real estate
  • Life insurance cash value (documented if used as cash down payment)
  • Social Security numbers of all parties
  • Veterans – Certificate of Eligibility & DD-214
  • Cash or check to pay for application fee
  • Divorce3 Decree/Separation Agreement
  • Settlement statement for any real estate sold in the last two years

     To be furnished by Realtor®

  • Copy of sales agreement
  • Instructions on how appraiser is to gain entrance to subject property
  • Homeowners Association contract, if applicable
  • Estimated property taxes

Wayne is a professional, full-time, full-service Realtor®!  Call him with your questions at 970-586-4425 or toll free 1-800-726-1405 and visit his FaceBook Page.

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