Borrowers need to submit what documents to loan officier for refinance?

[Vince Le]

This is my first file of refinance. What information that I need to collect as a loan officer?

or what documents will borrowers need to submit to the loan officer for refinancing?

Thank you very much

[John Karg]

Hi Vince,

It depends a lot on the type of program (Conventional, FHA, VA, Non-qualified mortgages) as well as the property and borrower. In general, a refinance requires documents proving the income of the borrower such as paystubs and W2s, as well as an appraisal of the property.

[Devin Peterson]

Quote from @Vince Le:

This is my first file of refinance. What information that I need to collect as a loan officer?

or what documents will borrowers need to submit to the loan officer for refinancing?

Thank you very much

 Hi Vince,

Are you a loan officer? Or are you asking what to prepare to give the LO? What type of program is this refinance? That matters most. I’m local to Tampa and st. Pete happy to connect!

[Adam Martin]

I have refinanced several times and it is pretty much the same financials as the original loan.  The only difference is they are also going to want a copy of the lease and proof the tenant is paying.  I just highlighted it on a statement to make it easy.  It seems no matter what you send they need more and newer so anytime you get a new statement just go ahead and send it in before they ask because they will.  

Mine are conventional but I sent 

All bank statements

Brokerage and retirement account statements

Last 3 paystubs and I sent a new one every 2 weeks

Lease and proof of payment

Copy of my drivers license

Tons of random forms they kept having me sign

I also have a good relationship with my loan officer so she just texts me to look at my portal anytime they need something so there aren’t delays.  Once you get started they will walk you through and they will probably have a checklist for you.  

[Jorge Vazquez]

Just saw your post about refinancing and wanted to clarify something real quick. Are you stepping into the shoes of a loan officer, or are you on the borrower's side, trying to figure out what documents you need to hand over to the LO?

Either way, I've got some insights that might help. If you're the loan officer, it's all about gathering the right docs from your clients. But if you’re prepping as a borrower, I can guide you on what you need to pull together.

[Daniel Brown]

This depends on the lender and program, no doc, lite doc, or full. Some base it only on property and dscr others take fico and liquidity.... and some take all. It depends on your goals. Do you want to take cash out, how much, what's the ARV, and what do you owe?

[Vanessa A Martin]

Hi Vince, 

It depends on the program the borrower is using. If this is a conventional loan then all documents pertaining to income,current mortgage and insurance, etc. if it is a DSCR refi you will need much less. 12 months of payment history, 12 months of rental income, insurance, bank statements and whatever else the lender may require.

[David Ross]

Ideally, you'd take a full loan application, run the loan through automated underwriting and the automated underwriting findings will tell you exactly what you need to obtain from your client as far as financials go.   

If you're just trying to see if the refinance is going to make sense and benefit the client, you really just need a copy of their most recent mortgage statement and their credit score.   In most cases, this is enough information to figure out if you have a deal that is going to benefit the client and make sense for them (this is assuming you can get an estimated value of the home you'll be refinancing through other means, otherwise, you might also ask them for their estimate as to what their home is worth).

If you're past this point of figuring out whether it's a deal that makes sense for them and you haven't run automated underwriting to determine what documentation is being asked for, here's a pretty standard list:

- 2023/2022 W2s (any/all jobs worked during these years, regardless of how long they were on the job)

- Most recent mortgage statement for the loan(s) you'll be paying off

- Copy of their homeowner's insurance binder or contact information for their homeowner's insurance agent so that you can request this on their behalf

- Most recent pay stubs covering 30 days (typically this is the last two pay stubs)

- If the property is in a homeowner's association, you'll want a recent HOA statement showing how much the borrower pays for their HOA dues

- Copy of the borrower's driver's license or ID card - front and back

- If your deal requires an appraisal, you may want to get payment information from the client now.  Most times, if an appraisal is required, the client pays for it at the time the appraisal is ordered on a credit or debit card (see if your company has a secure way of requesting this from them)

That's really going to be it in most cases.   If the client is self-employed or they own other real estate, you'll want to ask for a copy of their two most recent Federal tax returns - all pages/schedules (you shouldn't need the state tax returns).   If they are retired and receive Social Security or Pension income, you won't ask them for pay stubs or W2s - just report back here and we'll tell you what to ask for.  

Most of the time, you won't need proof of assets (bank statements) on a refinance because they won't be coming to closing with any money but if you want to be extra safe, you could ask them for their two most recent bank statements upfront.   Don't submit the bank statements to underwriting unless you actually need them to close the deal however, as it can cause additional steps in the process for you and your client (if an underwriter sees money moving around, it can cause you to have to paper-trail the funds back to their source, which often isn't a lot of fun).

If you haven't completed a loan application, start there.   There is a lot of information you will obtain by completing the loan application that will tell you what is applicable for your client and what isn't (i.e. are they retired, self employed, do they own other real estate, etc. etc. etc.)

Good luck!

[River Sava]

Hi Vince - Going to depend on a few factors. Is this conventional or non-conventional?