It used to be that lenders required documentation from borrowers thenmailed out verifications to employers, banks, mortgage companies, andso on, in order to verify the data. Nowadays, the interest is often inspeed and getting answers quickly, so "alternate documentation" hasbecome more widely used. Alternate documentation means thatunderwriting answers can be obtained with information supplied directlyfrom the borrower instead of waiting around for verifications to comeback in the mail. The following is required for most standardized loansas part of alternate documentation processing. Items may differaccording to whether your loan is a conforming (Fannie Mae or FreddieMac), non-conforming (jumbo) loan, government loan, or a portfolioloan. Verifications are still mailed out, but usually as part ofquality control procedures. These are the things you need to supply toyour lender to get a quick approval using alternate documentation:

W2 forms for the last two years
Paystubs covering a 30 day period
Federal tax returns (1040’s) for the last two years, if:
you are self-employed
earn more than 25% of your income from commissions or bonuses
own rental property
or are in a career where you are likely to take non-reimbursed business expenses.
Year-to-Date Profit and Loss Statement (for self employed)
Corporate or Partnership tax returns (if applicable)
Pension Award letter (for retired individuals)
Social Security Award letters (for those on Social Security)

Asset Items
Bank statements for previous two months (sometimes three) on all accounts. All pages.
Statements for two months on all stocks, mutual funds, bonds, etcetera
Copy of latest 401K statement (or other retirement assets)
Explanations for any large deposits and source of those funds
Copy of HUD1 Settlement Statement on recent sales of homes (see glossary for HUD1)
Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
Gift letter (if some of the funds come as a gift from a family member)
Gifts can also require:
Verification of donor’s ability to make the gift (bank statement)
Copy of the check used to make the gift
Copy of the deposit receipt showing the funds deposited into bank account or escrow

Credit Items
Landlord’s name, address, and phone number (for verification of rental -if you currently rent)
Explanations for any of the following items which may appear on your credit report:
Late payments
Credit inquiries in the last 90 days
Charge-offs
Collections
Judgments
Liens
Copy of bankruptcy papers if a bankruptcy shows up on your credit report or you have filed bankruptcy within the last seven years

Other
Copy of purchase agreement (if you have already made an offer)
To document receipt of child support (if you desire to show it as income)
Copy of Divorce Settlement (to show the amount)
Copies of twelve months canceled checks to document actual receipt of funds
FHA Loans
Copy of Social Security Card (or other documentation of social security number)
Copy of Driver’s license
VA Loans
Copy of DD214 - if you were in the military, you undoubtedly know what this is because when you get out of the service they constantly remind you to never ever lose this form. For those that were not in the military, it is basically a one page summary of an entire military career, including test scores, important dates, awards, and other military data.
Refinances
Copy of Note on existing loan
Copy of HUD1 Settlement Statement on existing loan
Name, address, phone number, loan number of existing loan/lender