1 Common Mortgage Documents 2017 Discover Bank, Member FDIC | NMLS ID 684042. 2. Contents document document About 5. About Your 6. About Your 7. About Your Income Other 8-9. 3. Introduction In order for Discover to process your home equity loan application, we will need some information about your property and finances. This brochure includes a handy checklist along with a list of requirements for Common Mortgage Documents that we may ask you to provide. Please note: You will NOT be asked for all of these Documents . We may also ask you to provide Documents that are not mentioned in this brochure. What you can expect: Your Personal Banker will provide you with an initial list of Documents we need to get started along with instructions on how to send us your paperwork. Every loan is different, so we may request additional Documents as we move through the loan process. Origination Processing Underwriting Closing Funding As a reminder, here's where you can send your Documents : Our Secure Website*: You may also send them via: Web: Mail: Box 29029, Phoenix, AZ 85038.
2 Overnight mail: 2402 W. Beardsley Rd, Phoenix, AZ 85027. Questions? If you have questions at any time during the loan process, please reach out to your Personal Banker for help. *Manage your loan application online. On our secure website, you can check your loan status, check your to do list, upload Documents , and more. Refer to the Online Account User Guide for details. 4. document Checklist Please refer to the document Requirements section for additional details. About You About Your Home Government-issued ID Current Mortgage statement Trust agreement, if your property is held in a trust Homeowner's insurance declaration page Voided check or ACH Form, if you will be receiving Flood insurance declaration page, if your property is in a cash out flood zone Homeowner's association statement, if you pay homeowner's association dues About Your Income About Your Income Other Sources Employed Alimony, Separate Maintenance, or Child Support Most recent paystub with year-to-date earnings Divorce decree, Legal Separation Agreement, Court Two most recent years of W-2s Order, or Voluntary Payment Agreement If you earn more than 25% of income from commissions, You may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan also send your two most recent years 1040s (US.)
3 Individual Tax Return) with all schedules Notes Receivable Income Self-Employed: Sole Proprietor Promissory note with cancelled checks for past 12. Two most recent years of 1040s with all schedules months Year-to-date Profit & Loss statement Rental Income Self-Employed: Partnership Most recent lease agreement Two most recent years of 1040s and 1065s (US Return of Retirement Account Income Partnership Income) with all schedules Statements for each employer, depository, and/or Two most recent years of K-1s (Partner's Share of brokerage account Income, Deductions, Credits, etc) showing ownership Social Security, Disability, or Pension Income Year-to-date Profit & Loss and Balance Sheet statements Social Security Award Letter and/or Self-Employed: S-Corporation Pension Award Letter and/or Two most recent years of 1040s and 1120Ss (US Income Prior Year's 1099. Tax Return for an S Corporation) with all schedules Trust Income Two most recent years of K-1s showing ownership Trust agreement or other trustee statement documenting Year-to-date Profit & Loss and Balance Sheet statements two-year payment history and current receipt of income Most recent 2 years W-2s, if applicable Most recent paystub(s) with year-to-date earnings Self-Employed: C-Corporation Two most recent years of 1040s and 1120s (US.
4 Corporation Income Tax Return) with all schedules Year-to-date Profit & Loss and Balance Sheet statements Most recent 2 years W2s, if applicable Most recent paystub(s) with year-to-date earnings 5. document Requirements As you gather the paperwork your loan team requests from you, we encourage you to review the information below. It will help you to identify the specific details we'll be looking for as we review your Documents . Please note: The term borrower refers to borrower and co-borrower, if applicable. About You Government-Issued ID Match borrower name on loan Required for all borrowers and non-borrowing spouses (in Spousal-Sign and application Community Property States). What we need: We will accept any government-issued ID, such as a driver's license, passport, or permanent resident card Only a copy of the front of the ID is needed Note: In some instances, we may need to request verification of your Social Security Number as well. If this is needed, we will ask you for a copy of your social security card.
5 Expired IDs will not be accepted Trust Agreement (or certificate, in some states) Borrower must be listed as trustee Required if the loan will be titled in the name of the trust Trust name must match vested name on property Where to obtain: Indicate the trust is revocable The attorney that administers your trust Indicate the trustee has the power What we need: to Mortgage /encumber assets Fully executed (signed and notarized) trust agreement held in the trust In those states in which Trust Documents cannot be provided, a Trustee List all beneficiaries (as permitted Certification is acceptable as long as all requirements to the right are met by state law). Signed and notarized Voided Check or ACH Form Match account holder name of at Required if you will receive loan proceeds directly transferred into a checking least one borrower account Bank name Where to obtain: Bank address If you don't have a voided check, you may complete our ACH Form or you may ask Routing number your bank for an Account Verification letter Account number What we need: Voided check or completed ACH form Personal checking account or sole proprietor (as per tax return) business checking account only document Requirements 6.
6 About Your Home Current Mortgage Statement Borrower name (at least one). Required for the property being used to finance this loan and any other properties Property address owned by the borrower(s) Current Mortgage balance Where to obtain: Monthly payment amount Your Mortgage lender(s) Payment breakdown (principal, interest, taxes, insurance, and What we need: assessments). Most current available Escrow information (if applicable). Less than 45 days old at time of application Interest rate loan type Homeowner's Insurance Declaration Page Borrower name (at least one). Required for all properties owned Property address Where to obtain: Policy number Your insurance agent Effective dates of policy Coverage amounts What we need: Annual premium Most current available Premium due date Note: An insurance binder is also acceptable Mortgagee clause must be updated to show Discover as loss payee prior to loan closing Expired policies will not be accepted Flood Insurance Declaration Page Borrower name (at least one).
7 Required if the subject property is in a flood zone Property address Where to obtain: Policy number Your insurance agent Effective dates of policy Coverage amounts What we need: Annual premium Most current available Premium due date Policy must be effective through the funding date of the loan Mortgagee clause must be updated to show Discover as loss payee prior to loan closing Expired policies will not be accepted Homeowner's Association (HOA) Statement Borrower name (at least one). Required for all borrowers who pay homeowner's association dues on subject Property address property Amount of dues Where to obtain: Payment frequency Your homeowner's association What we need: Most current available document Requirements 7. About Your Income Most Recent Paystub with Year-to-Date Earnings Borrower name Required for all borrowers who are wage earners Employer name Where to obtain: Beginning and end dates of paystub Your current employer Total pay for the paystub period What we need: Current and year-to-date amounts Must recent consecutive paystub(s) covering at least two weeks of employment Less than 30 days old at time of application W-2 Forms for Previous Two Years Borrower name Required for all borrowers who are wage earners Employer name Where to obtain: Social security number Your employer or your tax files What we need: Must represent the latest two-year period Note: Handwritten forms will not be accepted Tax Returns for Previous Two Years with All Schedules Includes IRS Forms 1040, Borrower name 1065, 1120S and/or 1120.
8 Required for all borrowers who are wage earners in a family business; self- employed; or who receive income from commissions, renters, boarders, interest and dividends, automobile allowances or expense accounts; and Social Security (in some cases). Where to obtain: Your accountant or your tax files What we need: Must represent the most recent two year period, include all schedules (including K-1 if in a partnership). Note: Handwritten returns will not be accepted Year-to-Date Profit & Loss and Balance Sheet Statements Business name Required for all borrowers who are self-employed in a partnership, S corporation, Year-to-date information for the or C-Corporation current year Where to obtain: Signed Generally, the financial controller of your business will have the latest copies of these Documents . Your banker can provide a template if needed. What we need: Less than 90 days old at the time of application document Requirements 8. About Your Income Other Sources The following Documents may be required if you will be using this income for the purpose of financing this loan .
9 Divorce Decree, Legal Separation Agreement, Court Order, or Borrower name Voluntary Payment Agreement Judges signature or the County Required if you receive alimony, child support, or separate maintenance payments recording information You may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan Where to obtain: Your divorce attorney What we need: Alimony or Separate Maintenance Income . A complete and finalized copy of one of the following: divorce decree, legal separation agreement, court order, or voluntary payment agreement Verification of receipt for previous 12 months ( cancelled checks, deposit slips, tax returns, etc). Child Support Income . All of the above listed under Alimony or Separate Maintenance Income Verification of continuance (DOB included in order/decree or copies of birth certificates). Promissory Note with Cancelled Checks for Past 12 Months Borrower name Required if you receive notes receivable income Payment amount Where to obtain: Your attorney What we need: Evidence that payments have been made to the borrower (or delegated agent on their behalf) or deposited into an account with borrowers name for the most recent 12 months ( cancelled checks, deposit slips, etc).
10 Lease Agreement Names of all parties involved Required if you receive rental income Address of the property being leased Where to obtain: Start and end dates of the lease If your copy is lost, check with your tenant(s). Lease amount What we need: Must be the current lease or the original lease with proof of receipt Please note: We will also require your most recent two years 1040s with all schedules Important note: You need to be the occupant of the subject property for the home equity loan Continued on next page document Requirements 9. About Your Income Other Sources Continued The following Documents may be required if you will be using this income for the purpose of financing this loan . Retirement Statements for Each Employer, Depository, and/or Brokerage Account Borrower name Required if you receive income from a 401k/Annuity/IRA Account balance Where to obtain: Distribution amount Company that administers your account Frequency of distribution What we need: Copy of most recent statement showing set distribution and account balance to verify three year continuance Please note: We will also require your most recent two years 1040s with all schedules Social Security or Pension Award Letter Borrower name Required if you receive social security, disability, or pension income Award amount Where to obtain: Frequency of payment Social Security Administration or the organization that administers your award plan What we need: Most recent available.