Common Mortgage Documents 2017 Discover Bank, Member FDIC NMLS ID 684042
Contents 2 Introduction...3 Document Checklist...4 Document Requirements...5 About You... 5 About Your Home... 6 About Your Income... 7 About Your Income Other Sources... 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*: DiscoverHomeEquityLoans.com/Login You may also send them via: Web: DiscoverHomeEquityLoans.com/upload Mail: P.O. Box 29029, Phoenix, AZ 85038 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 Government-issued ID Trust agreement, if your property is held in a trust Voided check or ACH Form, if you will be receiving cash out About Your Income Employed Most recent paystub with year-to-date earnings Two most recent years of W-2s If you earn more than 25% of income from commissions, also send your two most recent years 1040s (US Individual Tax Return) with all schedules Self-Employed: Sole Proprietor Two most recent years of 1040s with all schedules Year-to-date Profit & Loss statement Self-Employed: Partnership Two most recent years of 1040s and 1065s (US Return of Partnership Income) with all schedules Two most recent years of K-1s (Partner s Share of Income, Deductions, Credits, etc) showing ownership Year-to-date Profit & Loss and Balance Sheet statements Self-Employed: S-Corporation Two most recent years of 1040s and 1120Ss (US Income Tax Return for an S Corporation) with all schedules Two most recent years of K-1s showing ownership Year-to-date Profit & Loss and Balance Sheet statements 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 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 About Your Home Current mortgage statement Homeowner s insurance declaration page Flood insurance declaration page, if your property is in a flood zone Homeowner s association statement, if you pay homeowner s association dues About Your Income Other Sources Alimony, Separate Maintenance, or Child Support Divorce decree, Legal Separation Agreement, Court Order, or Voluntary Payment Agreement You may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan Notes Receivable Income Promissory note with cancelled checks for past 12 months Rental Income Most recent lease agreement Retirement Account Income Statements for each employer, depository, and/or brokerage account Social Security, Disability, or Pension Income Social Security Award Letter and/or Pension Award Letter and/or Prior Year s 1099 Trust Income Trust agreement or other trustee statement documenting two-year payment history and current receipt of income
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 Required for all borrowers and non-borrowing spouses (in Spousal-Sign and Community Property States) 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. Match borrower name on loan application Expired IDs will not be accepted Trust Agreement (or certificate, in some states) Required if the loan will be titled in the name of the trust The attorney that administers your trust Fully executed (signed and notarized) trust agreement In those states in which Trust documents cannot be provided, a Trustee Certification is acceptable as long as all requirements to the right are met Voided Check or ACH Form Required if you will receive loan proceeds directly transferred into a checking account If you don t have a voided check, you may complete our ACH Form or you may ask your bank for an Account Verification letter Voided check or completed ACH form Personal checking account or sole proprietor (as per tax return) business checking account only Borrower must be listed as trustee Trust name must match vested name on property Indicate the trust is revocable Indicate the trustee has the power to mortgage/encumber assets held in the trust List all beneficiaries (as permitted by state law) Signed and notarized Match account holder name of at least one borrower Bank name Bank address Routing number Account number
Document Requirements 6 About Your Home Current Mortgage Statement Required for the property being used to finance this loan and any other properties owned by the borrower(s) Your mortgage lender(s) Most current available Less than 45 days old at time of application Homeowner s Insurance Declaration Page Required for all properties owned Your insurance agent Most current available 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 Required if the subject property is in a flood zone Your insurance agent Most current available 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 Required for all borrowers who pay homeowner s association dues on subject property Your homeowner s association Most current available (at least one) Property address Current mortgage balance Monthly payment amount Payment breakdown (principal, interest, taxes, insurance, and assessments) Escrow information (if applicable) Interest rate Loan type (at least one) Property address Policy number Effective dates of policy Coverage amounts Annual premium Premium due date (at least one) Property address Policy number Effective dates of policy Coverage amounts Annual premium Premium due date (at least one) Property address Amount of dues Payment frequency
Document Requirements 7 About Your Income Most Recent Paystub with Year-to-Date Earnings Required for all borrowers who are wage earners Your current employer 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 Required for all borrowers who are wage earners Your employer or your tax files 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, 1065, 1120S and/or 1120 Required for all borrowers who are wage earners in a family business; selfemployed; or who receive income from commissions, renters, boarders, interest and dividends, automobile allowances or expense accounts; and Social Security (in some cases) Your accountant or your tax files 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 Required for all borrowers who are self-employed in a partnership, S corporation, or C-Corporation Generally, the financial controller of your business will have the latest copies of these documents. Your banker can provide a template if needed. Less than 90 days old at the time of application Employer name Beginning and end dates of paystub Total pay for the paystub period Current and year-to-date amounts Employer name Social security number Business name Year-to-date information for the current year Signed
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. Divorce Decree, Legal Separation Agreement, Court Order, or Voluntary Payment Agreement Required if you receive alimony, child support, or separate maintenance payments You may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan Your divorce attorney 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 (e.g. 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 Required if you receive notes receivable income Your attorney 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 (e.g. cancelled checks, deposit slips, etc) Lease Agreement Required if you receive rental income If your copy is lost, check with your tenant(s). 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 Judges signature or the County recording information Payment amount Names of all parties involved Address of the property being leased Start and end dates of the lease Lease amount 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 Required if you receive income from a 401k/Annuity/IRA Company that administers your account 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 Required if you receive social security, disability, or pension income Social Security Administration or the organization that administers your award plan Most recent available; must represent the current year Please note: For social security and pension earners, the most recent year 1099 is also acceptable Trust Agreement or Other Trustee Statement Required if you receive trust income Your attorney who administers the trust Most recent trust agreement or other trustee statement that documents two-year payment history and current receipt of income Bank Statements or Cancelled Checks for Past 12 Months Required if you are a cosigner on a loan but someone else is making payments and you wish to have this debt removed from your debt-to-income ratio 3rd party s bank and/or lender Bank statements or cancelled checks from the person who has been making the payments on this cosigned loan; if payments are being made electronically, we will also accept a bank account printout that contains a summary of payments Must reflect most recent 12 month period Account balance Distribution amount Frequency of distribution Award amount Frequency of payment Trust name Amount of trust Frequency of distribution Duration of payments Account number Payment amount Payee Payer