Full Doc Loan
Full documentation loans are loan applications that require a high level of information about employment, assets, and sources of income of the applicant. Our Non-QM Full Document is a mortgage program solution for those home buyers who are recovering from an unexpected credit event or those who are self-employed, small business owners or investors.
Documents Needed for Full Doc Loans
Income Verify Documents
Verifying income normally involves providing several official documents that will verify the level of income reported by the applicant. Generally, this will include these two types of documents:
the W-2 form for the two most recent tax year, along with 30 days’ pay stub.
In the event the applicant is self-employed, W-2(if any) for two most recent tax year may be utilized.
In both scenarios, the process for a full documentation loan normally involves providing copies of the state and federal tax returns for the two most recent years.
Asset Verify Documents
Along with the verification of income, the applicant for a full documentation loan will also provide proof of any assets currently in his or her possession. This will include details on all bank accounts, stocks and investments, and titles and deeds to property such as land or vehicles. For all financial accounts, the lender may also request copies of the most recent two-to-three-month period.
The current amount of indebtedness will also be documented in a full documentation loan process. Every type of outstanding debt is included. This will mean all credit card balances, furniture, automobile, and student loans. In addition, the applicant will need to declare any child support or alimony payments that he or she is responsible for making on a recurring basis. Essentially, any type of debt should be reported as part of the process of obtaining a full documentation loan.
Benefits of a Full Doc Loans
Traditionally, full documentation lenders offer lower rates because they lend to people and businesses with verified income and assets and usually higher credit scores. Working with a full documentation lender is the preferred option if you can document your income and have a high credit score because you will be able to take advantage of the best rates.