What you need to get ready before applying for a mortgage loan – Carolina's Lending Source, Inc.

Supporting Documentation Checklist

Once you have applied on-line, we request a credit report, merge the liabilities into your application and the post a Residential Mortgage Loan Application in .pdf format along with the Federally and State mandated dosclosures to your Personal Loan Center.

Log in, open your application and review it for acuracy. If your interest rate is locked, the application should reflect the correct interest rate and points. If your interest rate is not locked, the interest rate will be reflected as the middle interest rate on our Interest Rate Page.

Pages one (1) through eight (8) of the document entitled Application must be returned to us along with the below documentation.

How to return documentation

There are two methods for submitting your signed application and supporting documentation:

Fax to 866.370.2189
From your Personal Loan Center, click the Manage Documents tab and then choose Upload.

Checklist of Supporting Documentation

Please review this list of documentation carefully and submit only the documentation that applies to your specific situation:

Patriot Act Requirement

Picture ID (Preferably drivers license)

Copy of front and back of green card (if applicable)

If working is the U.S. under a visa, provide copy of passport and visa.

Property Information (Purchase)

Purchase Agreement. You can ask your realtor to submit this.

If you have sold your current home, copy of settlement statement (HUD-1).

Property Information (Refinance)

Copy of your current mortgage statement and the mortgage statement for any other properties you own such as vacation homes or investment properties.

If you currently have a 2nd mortgage or home equity line that will be subordinated (you are keeping it) or paid off in the refinance:

	Copy of Promissory Note or Home Equity Line Agreement (all pages)
	Copy of the HUD-1 Settlement Statement from the closing on the 1st and 2nd mortgage or home equity line

Income and Employment

Employed for two years with no commission income

	Most recent pay stub with year-to-date totals
	Previous year's W-2 (from each employer if you changed jobs in the previous year)

Employed for two years with commission income

	Most recent pay stub with year-to-date totals
	Previous year's W-2 (from each employer if you changed jobs in the previous year)
	Most recent two years of tax returns, signed, with all schedules. Commission income is derived by averaging the last two years of commissions and then subtracting un-reimbursed business expenses.

Self-Employed

If any portion of your income is derived from a business that you are a 25% or greater owner, then slef-employed documentation is required:

	Most recent two years of tax returns, signed, with all schedules.
	If you are both employed and self-employed, provide the tax returns in addition to the documentation required under the employed heading.

If you own rental property:

Tax returns for the last two years and current rental agreements.

If you are retired:

Pension Award Letter.

If you receive Social Security:

Social Security Award Letter.

If you are counting child support as income:

	Copy of divorce settlement, separation agreement.
	Copy of twelve months of cancelled child support checks.

Assets

Documentation is required to suppory any funds that will be needed at closing. For a purchase, that would include down-payment and closing costs. For a refinance, that would include any closing costs or prepaids that you are paying out-of-pocket:

All pages of most recent bank or other liquid account statement.

Letter of explanation for any large deposits (other than your regular income) that appear on the statement and a paper trail. For example: if you transferred money from your money market fund to your savings for your down-payment, provide a copy of the money market account statement that shows the transfer.

Gifts. Gift funds may be received from a close family member, but the final 5% of the down-payment must be from your own funds. To document a gift:

	Gift letter from the grantor stating the amount, purpose, relationship to borrower, how the funds were delivered and that the gift does not need to be re-paid.
	Paper trail. Account statement where the funds came from, document the transfer (such as cashier's check and deposit slip) and account statement from the receiving account.

Reserves - Assets above those required for closing

	Generally, reserves are not required but may be a positive contributing factor on some loans. Reserves may be documented with either liquid or retirement funds.
	Investment properties require six (6) months reserves (monthly payment X 6)

Cash. Cash-on-hand or unverifiable deposits cannot be used to satisfy asset requirements

Miscellaneous

If you are currently separated, copy of separation agreement or free trader agreement.

Carolina's Lending Source, Inc. 2500 Regency Parkway Cary, NC 27518

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