Documents Which May Be Required:

• Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits.
• Previous bankruptcy – need copies of petition for bankruptcy and discharge, including supporting schedule.
• Divorce Decree if applicable.
• Documentation supporting monies received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.

Self-Employed Borrowers Additional Documents:

• Copies of signed business tax returns for last two years.
• YTD Profit & Loss Statement and Balance Sheet.
• Copy of Business License or CPA contact information.
• 1099s or K1 forms.

Documents Needed for FHA/VA Loans:

• FHA: Copy of social security card for each applicant and co-applicant.
• VA: Original certificate of eligibility and copy of DD214 discharge paper.
• VA: Name and address of nearest living relative.

LLC Property Loan Documentation Guide

When an LLC (Limited Liability Company) applies for a loan to purchase a second property (often called a "non-owner-occupied" or investment property), lenders treat it differently from an individual borrower. They focus on both the LLC's financial health and sometimes the personal guarantees of the owners. Here's a detailed list of documents typically required:

1. LLC Formation Documents

• Articles of Organization / Certificate of Formation – proves the LLC legally exists.
• Operating Agreement – shows ownership structure, management, and decision-making authority.
• EIN (Employer Identification Number) – IRS-issued tax ID for the LLC.
• Business License (if applicable) – some lenders require proof the LLC is authorized to operate in the state.

2. Financial Statements of the LLC

• Profit & Loss Statement (P&L) – shows income and expenses.
• Balance Sheet – lists assets, liabilities, and equity.
• Cash Flow Statement – some lenders request this to evaluate liquidity.
• Bank Statements (typically 3–6 months) – verify cash reserves.
• Lenders often prefer tax returns if the LLC has filed them for 1–2 years.

3. Tax Returns

• LLC tax returns – Form 1065 (for multi-member LLC) or Schedule C on personal tax returns (for single-member LLCs, sometimes disregarded entity).
• K-1 forms (for multi-member LLCs) – shows individual member's share of income.

4. Property Information

• Purchase Agreement / Contract – signed agreement for the property purchase.
• Property Appraisal – lender may require an independent appraisal.
• Property Details – address, type (single-family, condo, multi-unit), intended use (rental or second home).

5. Personal Guarantees / Financial Info (if required)

Many lenders require personal guarantees from members, especially if the LLC has limited operating history.

Documents may include:

• Personal credit reports.
• Personal tax returns (usually 2 years).
• Personal bank statements.
• Net worth statement of members.

6. Other Documents

• Debt Schedule – list of LLC's current debts and obligations.
• Insurance – proof of property insurance, sometimes liability insurance for the LLC.
• Management Agreements – if a property management company is involved.

Having a preapproval letter can give buyers a competitive edge, especially when compared to home shoppers who have not sought mortgage preapproval. With a preapproval letter, you’ll not only be able to make offers on properties faster, but you’ll also enjoy a leg up on shoppers who haven’t gone through financial screening to see if they qualify for a mortgage.

What Exactly is a Mortgage Pre-Approval?

A mortgage preapproval is a statement, usually a document or letter, of how much money a lender is willing to let you borrow to pay for a home. The preapproval indicates that the lender is prepared to move forward with the loan as long as the home meets certain criteria and your financial situation doesn’t change drastically while you look for a home to purchase.

The preapproval is based on your financial profile, including your income, how much money you have in the bank and investment accounts and your debts. The lender performs a hard credit inquiry as part of the preapproval process, as well. With this information, the lender can make an informed estimate about how much house you can afford and, if you qualify, can preapprove you for a specific loan amount.

A mortgage pre-approval uses your verified credit score, income documentation, bank statements, and employment verification to approve you, as a buyer, to purchase a home.

Once pre-approved, you’ll receive an itemized estimate of interest rates, closing costs, monthly payments, and the maximum amount you’re approved to buy. This information is crucial to understanding how much you can borrow.

What is the Difference Between Pre-Qualification and Pre-Approval?

A pre-qualification does not use verified information to approve you, whereas a pre-approval does.

Pre-qualifications use self-reported information and don’t take the additional steps to verify it. Pre-qualifications provide estimates rather than accurate numbers.

A pre-approval requires an actual credit check and supporting financial documentation, which gives a precise, customized quote for every home buyer.

Benefits of Getting Pre-Approved Before You House Shopping

A mortgage preapproval helps you understand the affordability of a house by specifying the loan amount a lender is willing to offer based on your financial details. This amount is determined after a thorough evaluation of factors like your credit history, income, and debt-to-income ratio (DTI). Essentially, it provides you with a precise and realistic understanding of your budget constraints, enabling you to concentrate your property search on homes within your financial means.

Inspires Confidence With Home Sellers

Obtaining mortgage preapproval demonstrates your genuine commitment to the real estate process and also positions you as an appealing buyer to sellers. Sellers often prefer preapproved buyers because it assures them of your comprehensive financial evaluation, making your offer more attractive and reducing the perceived risk of financing issues causing the deal to fall through.

In competitive markets with multiple offers, having preapproval gives you a significant edge by providing a clear budget and enhancing your overall credibility. This increases the likelihood of sellers viewing your offer favorably and can contribute to a smoother overall process for everyone involved.

Speeds Up The Closing Process

Initiating your home buying journey with mortgage preapproval not only brings financial clarity but also expedites the subsequent closing process.

With preapproval, a significant part of the groundwork for your mortgage application, including a thorough examination of financial documents and credit history, is already completed.

This upfront preparation facilitates a swift start to the formal mortgage application process when you find the perfect property, often leading to a quicker closing. Essentially, beginning with mortgage preapproval positions you advantageously for a more efficient and timely transition from offer to the final closing stages of your home purchase.

Why Choose Florida New Homes Advise Look around, compare and if you find something better Hire them

When you're ready to think about buying or selling your property, you need to ask yourself the following questions: Do you have the time, energy, sources of information, and contacts to do the job yourself? If you were one of the 'do-it-yourself' people, would the results be as good or better than they would be if you had professional assistance? Would it have gone smoother? Would it have given you more personal time? Would you have purchased for less, or sold for more, if a real estate agent was involved?

Read the following information and learn how We can help you understand everything you need to know about a real estate transaction.