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Whether you have found your dream home and are ready to buy, hiring a contractor to build your next house, or are putting on the hard hat yourself to make your new home a reality, chances are, you need financing. When applying for a loan, there’s a folder of common documents you will need to help ensure a smooth process.

The Basics: This first section lists documents you will need for most all home and home construction loans.

• A completed loan application
  • Your completed application may not be in your folder of documents, but rather something you complete online. Most lenders, like GreenStone, offer an online application tool. We recommend speaking with a financial services officer before submitting an application to go over approval details and to discuss your exact plans.
• E-Consent form
  • In order for your lender to be able to send disclosure agreements for you to sign via email, you will be provided with an E-Consent form to fill out. If you choose not to sign this document, each disclosure form from your lender will need to be sent via mail, which can slow down the closing process.  
• Your two most recent tax returns
  • To help determine what type of a loan you can financially support, a lender will look at your income. At GreenStone, we require your two most recent tax returns and evaluate your two-year historical average.
• Pay stubs from the past 30 days
  • To validate your income and employment status, GreenStone asks for your pay stubs from the past 30 days.
• Two months of bank statements
  • In order to verify your liquid assets which helps determine down payment capabilities and contribute to your overall financial review for a loan, your lender will ask for recent bank statements. At GreenStone, we asked for two months of statements.
• Most recent investment statements
  • Another way for your lender to calculate your liquid assets is to provide investment statements such as your 401K and IRAs. GreenStone requests your most recent statements from each of your investment accounts.
• Purchase agreement
  • Before a lender can move forward with a loan, they need to know there is a legally binding document from the seller that the buyer intends to purchase the land or property.
• Photo Identification
  • For your safety, to be approved for a loan, you must provide an official form of photo identification. This can be your driver’s license, state-issued ID card, or passport.

Refinancing: If you are refinancing a piece of land or a home, you need all of the documents from the above “The Basics” section, along with the following documents.

• Most recent winter and summer tax bills
  • As part of the evaluation of your ability to repay your loan, lenders take into account your taxes. At GreenStone, when refinancing, we ask for your most recent winter and summer tax bills.
• Insurance declaration page indicating annual premium
  • Similarly to your tax bills, we take into account your homeowner’s insurance premium to ensure all expenses are factored into the evaluation of feasibility of loan repayment.

Construction Loans (for a self-build): If you plan on building your dream home by yourself, you will need all of the documents from “The Basics” section, along with the following documents.

• Building plans
  • A lender will typically ask for your building plans. Some may require stamped blueprints. GreenStone requires an outline of your building plans and goals. This includes the dimensions of each room and a floor plan.
• Dwelling specifications form
  • Your lender will ask for a specifications form that outlines the design of your home. The form will also specify what type of material you will use, such as wood, metal, and concrete.
• Bids from contractors for the entire build
  • Although your plan is to build the entire home yourself, it’s important to plan ahead in case of a bump in the road. GreenStone requires bids from contractors to fulfill the work of your home in case you are injured or can no longer finish the build yourself during the designated timeline.
• Dwelling under construction insurance
  • Most lenders, including GreenStone, require you to secure construction insurance to protect against things during construction, like theft of building materials or structure damage during the build because of things like weather.

Construction Loans (for a contractor build): If you are hiring a builder or multiple builders to create your dream home, you need all of the documents from “The Basics” section, along with the following documents for your loan application.

• Building plans
  • A lender will typically ask for your building plans. Some may require stamped blueprints. GreenStone requires an outline of your building plans and goals. This includes the dimensions of each room and a floor plan.
• Dwelling specifications form
  • Your lender will ask for a specifications form that outlines the design of your home. The form will also specify what type of material you will use, such as wood, metal, and concrete.
• Construction agreements
  • Your lender needs to make sure the build will happen within the specified timeline. In order to ensure that, you will need to provide a construction agreement signed by both yourself and the builder(s). If you are working with more than one building company, you will need to provide an agreement for each one.
• Sworn statement signed and notarized
  • You will need to provide a sworn statement outlining that you and your builder agree to complete the construction project in the outlined timeline. A sworn statement is a construction document that lists the contractors and supplies that provide material or labor for a project. It includes information about who is owed money and how much they are owed.
• Dwelling under construction insurance
  • Most lenders, including GreenStone, require you to secure construction insurance to protect against things during construction, like theft of building materials or structure damage during the build because of things like weather.

Knowing what documents to provide when applying for a home or construction loan can get confusing and overwhelming. Our GreenStone team of local experts is ready to assist you! Before submitting an application, visit your local GreenStone branch or give them a call to have one of our friendly staff walk you through the approval process. Get started today at www.GreenStoneFCS.com/apply.

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