In the good old days, it was easy to get property and become a MA property manager as people were able to get mortgages easily. The applicant would fill out a form; the lender would check the credit score and most of the times they would end up getting a mortgage. These days it is not as easy as applicants have to submit extensive paperwork with their application. This post gives you a list of items you need to document your income.
One of the best ways to verify your income is via paycheck stubs. This allows lenders to see if you are getting a steady income. If you get paid electronically, then you can print out your paycheck stubs and submit them. It is a good idea to provide up to 6 months of paycheck stubs though some may be asked to show up to 2 years of pay stubs.
Bank, investment and tax documents
A mortgage application also requires the borrower to submit bank and investment statements for the last 30 days. If the loan amount is huge, then they could be asked to submit up to three months of statements. The borrower also needs to submit a recent tax return including all pages and schedules.
This is to be followed by signing an IRS Form 4506-T, which allows the lender to get a transcript of the tax return from the IRS. This practice is in place so that there is no fraud.
Self-employed applicants need to submit a current-year profit-and-loss statement, even if the year is more than half over or they haven’t filed their prior year’s tax return.
Rental property income: MA Property Manager
Mortgage applicants can also include rents from investment property in their income need to show the income on their tax return. Those applicants who want to rent out their current residence must provide a rental agreement, canceled rent checks and bank statements. The other pre-requisite is that they must have at least 30 percent equity in their current residence.
If the applicant has received a cash gift towards their down payment, then there must be a letter to prove that the gift wasn’t a loan. The person giving the gift must also submit a bank statement to prove it. The best thing would be to ensure that the gift is from a family member.
Renters need to supply 12 months of canceled rent checks and bank statements to prove that the rent was paid on time. If there is no documentation available, they can provide the landlord’s name and contact information for payment verification.
There may be instances where applicants may have to provide a copy of a divorce decree, bankruptcy discharge papers and more. Lenders could also be asked for letters that explain negative items on a credit report or verify the borrower’s motivation for the loan.
We hope you liked our guide “MA Property Manager: Documents you need to get a Home Mortgage “.