What Documents Will We Need?

Buyers and Sellers need more documentation than ever. We now need to show who we are, why we need to sell or buy and where are we getting the money from. You will not need to supply dental records yet but that could change in the future. Here are a few of the needed documents

• A current drivers license or a Legal ID is required for the obvious reason of proving you are who you think you are. Both the Buyer and Seller must show proof at the closing table if not before.
• Two years of W-2 forms or Tax returns will be needed as part of applying for a mortgage and qualifying for a short sale. The bank wants to see a stable income sufficiently large enough and consistent to repay the requested loan amount. A Short Sale requires disclosure of all the financial aspects of your life as part of the qualifying.
• Last two months bank account statements. Lenders want proof of a dependable income (if that’s still possible in Michigan) that will help to repay their mortgage. For Short Sales those will help to prove a hardship is present.
• Paycheck Stubs will be required to confirm the current employment of a Buyer. For Short Seller’s this will be part of proving you have a financial hardship.
• A Gift Letter may be required if a relative is helping to supply the down payment and proof that the money was theirs to give. The Seller may also require the withdrawal and deposit statements to track where the money came from. This is to prove it was not mattress money or cookie jar money, this old rule was strengthened by the hunt for terrorist financing.
• Marriage is a form of partnership and as such needs to be documented if the partnership is dissolved. You will need to show a Divorce Decree in that case. If married and selling both partners must be available to sign Proving they both agree to the sale or short sale.

These are just a few of the Hoops currently held up for Buyer’s and Seller’s to get through. There are more, the whole procedure can be very nerve wrecking. Please do not hesitate to ask your Realtor or Loan Agent for their advice or to express your fears. As Professionals we are involved thirty, forty or more transactions every year, we really do understand and are willing to do whatever we can smooth the rough parts. Just ask, we can turn the light on and chase away the shadows.

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