Self Employed Borrower

Sole Proprietorship

• Last 2 Years 1040’s- All pages, all schedules- Should include a Schedule C
• Year to date most recent quarter Profit and Loss
• Copy of Driver’s License

Partnership – If ownership is more than 25%

• Last 2 Years 1040’s- All pages, all schedules- Should include a Schedule E
  K-1’s from 1065
• Last 2 Years 1065’s- All pages, all schedules
• Year to date most recent quarter Profit and Loss
• Copy of Driver’s License

S Corporation – If ownership is more than 25%

• Last 2 Years 1040’s- All pages, all schedules- Should include a Schedule E
  K-1’s from 1120S
• Last 2 Years 1120S- All pages, all schedules
• Year to date most recent quarter Profit and Loss
• Copy of Driver’s License

Corporation

• Last 2 Years 1040’s- All pages, all schedules- Should include a Schedule E
• Last 2 Years 1120- All pages, all schedules
• Year to date most recent quarter Profit and Loss
• Copy of Driver’s License

W-2’d Borrower

• Most Recent 2 Years W-2’s
• Last 4 paystubs
• Most Recent Asset Statements (Bank account, stock account, etc.) All pages even if blank
• Copy of Driver’s License

• Moving money around

If you’ve been saving cash at home (in the mattress) , do not—Liberty Mortgage repeats—do not move that money into your bank account.  Those funds will be almost impossible to source and more than likely cannot be used for your down and payment and closing costs –  Speak to us first –  We will guide you on what to do –

• Cash advance on a credit card

Taking a cash advance on one’s credit card to use for the down payment and or closing costs is not allowed –  Those funds cannot be used –  Additionally, you would then be adding unneeded debt to yourself –

• Change Your Job

We all want to make as much as possible –  The issue is changing jobs in the middle of financing causes major issues-  We then would need to wait until you had at least 1 month’s worth of pay stubs and we would need to consider the type of job as well –  Assuming the job change was in the works for quite a while and makes sense – (same industry, better pay) then it would work –  Changing jobs into a total different industry might cause an issue with financing –  Additionally, never go from being an employed borrower, i.e. – a salaried / W-2 worker, to self employed –  That will cause a denial of any type of financing –

• Avoid Large Purchases

Do not purchase high end, expensive items prior to us closing your loan –  We understand the new home will require furniture, appliances, etc-  sometimes during a loan process, credit would have to be rerun-  If new items do appear they will cause your debt to income to go up –