SARAH & MIKE JOHNSON – COMPLETE DOCUMENTATION PLAN

• LOAN APPLICATION SUMMARY:
• Borrowers: Sarah Johnson (W-2) + Mike Johnson (Self-Employed)
• Property: $425,000 home, Denver CO
• Loan amount: $340,000, 80% LTV, Conventional
• Special circumstances: ________________________________
• SARAH’S DOCUMENTATION (W-2 EMPLOYEE):
• Income Documentation:
• – Pay stubs: Most recent _____ (dates: _____ to _____)
• – W-2 forms: 20____ and 20____
• – Employment verification letter: From HR, includes base + bonus
• – Bonus documentation: _____ year history, employer verification
• – Employment stability letter: Addressing startup company age
• Asset Documentation:
• – Bank statements: _____ months, all accounts
• – Investment accounts: _____ (types and amounts)
• – Asset verification: Total liquid assets $______
• Personal Documentation:
• – Driver’s license: Current, unexpired
• – Social Security card: Original or W-2
• – ________________________________
• MIKE’S DOCUMENTATION (SELF-EMPLOYED):
• Income Documentation:
• – Personal tax returns: 20____ and 20____ (complete)
• – Business tax returns: 20____ and 20____ (all schedules)
• – Profit & Loss statement: Year-to-date 2024, CPA prepared
• – Business license: Contractor license, current
• – Bank statements: Business accounts _____ months
• – CPA letter: Explaining income trends, seasonal variations
• Income Analysis Strategy:
• – Tax return income: $_____ (2023), $_____ (2022)
• – Add-back deductions: ________________________________
• – Calculated qualifying income: $______/month
• – Seasonal income explanation: ________________________________
• Asset Documentation:
• – Personal bank statements: _____ months
• – Business bank statements: _____ months
• – Equipment/business assets: _____ (if significant)
• GIFT FUND DOCUMENTATION:
• Gift Details:
• – Gift amount: $35,000 from Sarah’s parents
• – Donor information: ________________________________
• – Relationship verification: ________________________________
• Required Documentation:
• – Gift letter: Signed by donors and recipients
• – Donor bank statements: _____ months before gift
• – Investment liquidation proof: ________________________________
• – Wire transfer receipt: Showing fund transfer
• – Recipient bank statements: Showing gift deposit
• Gift Letter Contents:
• – Donor names and address: ________________________________
• – Recipient names: Sarah and Mike Johnson
• – Gift amount: $35,000
• – No repayment expected: Confirmed in writing
• – Relationship: ________________________________
• – Source of funds: Investment liquidation
• LARGE DEPOSIT EXPLANATIONS:
• Mike’s Business Deposits:
• – Date: _____ Amount: $_____
• – Source: ________________________________
• – Supporting documentation: ________________________________
• – Date: _____ Amount: $_____
• – Source: ________________________________
• – Supporting documentation: ________________________________
• Gift Fund Deposit:
• – Date: _____ Amount: $35,000
• – Source: Parent gift (see gift documentation above)
• – Supporting documentation: Complete gift fund package
• DEBT DOCUMENTATION:
• Mike’s Student Loans:
• – Loan servicer: ________________________________
• – Current balance: $45,000
• – Monthly payment: $_____ (income-driven)
• – Payment verification: _____ months statements
• – IBR documentation: Income-based repayment plan details
• Credit Cards (Both Borrowers):
• – Card 1: $_____ balance, $_____ minimum payment
• – Card 2: $_____ balance, $_____ minimum payment
• – Card 3: $_____ balance, $_____ minimum payment
• – Total credit card debt: $8,000
• – Payoff strategy: ________________________________
• Auto Loan:
• – Lender: ________________________________
• – Current balance: $25,000
• – Monthly payment: $_____
• – Remaining term: 18 months
• PROPERTY DOCUMENTATION:
• Purchase Contract:
• – Purchase price: $425,000
• – Contract date: ________________________________
• – Closing date: ________________________________
• – Earnest money: $_____ (receipt required)
• Property Information:
• – Property address: ________________________________
• – Property type: Single-family residence
• – HOA fees: $_____ (if applicable)
• – Property taxes: $_____ annually
• Insurance:
• – Homeowners insurance quote: $_____ annually
• – Coverage amount: $_____ (meets lender requirements)
• – Insurance company: ________________________________
• PROFESSIONAL ORGANIZATION STRATEGY:
• Digital Folder Structure:
• 📁 Johnson_Mortgage_Application_2024
• ├── 📁 01_INCOME_DOCUMENTATION
• │ ├── 📁 Sarah_W2_Employee
• │ └── 📁 Mike_Self_Employed
• ├── 📁 02_ASSET_DOCUMENTATION
• │ ├── 📁 Personal_Bank_Statements
• │ ├── 📁 Business_Bank_Statements
• │ └── 📁 Gift_Fund_Documentation
• ├── 📁 03_CREDIT_DEBT_DOCUMENTATION
• ├── 📁 04_PERSONAL_IDENTIFICATION
• ├── 📁 05_PROPERTY_DOCUMENTATION
• └── 📁 06_EXPLANATORY_LETTERS
• File Naming Convention:
• – INCOME_PayStub_20241201_Sarah.pdf
• – ASSETS_BankStatement_202411_Joint.pdf
• – GIFT_DonorStatement_202410_Parents.pdf
• – BUSINESS_TaxReturn_2023_Mike.pdf
• – ________________________________
• QUALITY CONTROL CHECKLIST:
• Document Quality Standards:
• □ All documents scanned at 300+ DPI
• □ Every page included (even blank pages)
• □ All text clearly readable
• □ Documents within required date ranges
• □ Consistent naming across all documents
• Completeness Verification:
• □ Income documentation complete for both borrowers
• □ Asset documentation supports down payment
• □ All large deposits explained with documentation
• □ Gift fund documentation complete and compliant
• □ All debt obligations documented
• □ Property documentation complete
• SUBMISSION STRATEGY:
• Submission Method:
• – Primary: Lender’s secure online portal
• – Backup: Encrypted email with password protection
• – Organization: Submit by category with cover pages
• Submission Timeline:
• – Day 1-3: Gather all standard documentation
• – Day 4-5: Address special circumstances
• – Day 6: Quality control review
• – Day 7: Professional package preparation
• – Day 8: Submit complete package
• Follow-up Strategy:
• – Confirm receipt within 24 hours
• – Weekly status check-ins
• – Respond to additional requests within 24 hours
• – Maintain organized backup copies
• EXPLANATORY LETTERS NEEDED:
• Letter 1 – Self-Employment Income:
• Subject: Mike Johnson Business Income Explanation
• Content: ________________________________
• Letter 2 – Gift Fund Source:
• Subject: Down Payment Gift Explanation
• Content: ________________________________
• Letter 3 – Large Business Deposits:
• Subject: Recent Business Deposit Explanation
• Content: ________________________________
• Letter 4 – Company Age (Sarah’s Employer):
• Subject: Employment Stability Verification
• Content: ________________________________
• POTENTIAL LENDER QUESTIONS & RESPONSES:
• Self-Employment Income Calculation:
• Q: How is qualifying income calculated for contractor?
• A: ________________________________
• Gift Fund Compliance:
• Q: Are gift funds properly documented?
• A: ________________________________
• Employment Stability:
• Q: Is Sarah’s employment stable at startup company?
• A: ________________________________
• Debt-to-Income Ratio:
• Q: How do student loan payments affect DTI?
• A: ________________________________
• RISK MITIGATION STRATEGIES:
• Self-Employment Documentation:
• – Provide 3+ years tax returns if available
• – Include CPA letter explaining income trends
• – Show strong business bank account balances
• – Provide client contracts showing ongoing work
• Gift Fund Compliance:
• – Complete paper trail from source to deposit
• – Demonstrate gift funds seasoned before use
• – Signed gift letter with no repayment clause
• – Verify relationship and donor capacity
• Income Stability:
• – Employment verification emphasizing stability
• – Bonus history and likelihood of continuation
• – Combined household income strength
• – Conservative debt-to-income calculations
• PROFESSIONAL PRESENTATION ELEMENTS:
• Cover Letter:
• “Dear [Lender Name],
• We are pleased to submit our complete mortgage application
• documentation for the purchase of [property address].
• This package includes…”
• Executive Summary:
• – Combined income: $160,000
• – Down payment: $85,000 (20%)
• – Credit profile: ________________________________
• – Employment stability: ________________________________
• Document Index:
• 1. Income Documentation (Pages 1-25)
• 2. Asset Documentation (Pages 26-45)
• 3. Credit & Debt (Pages 46-55)
• 4. Personal ID (Pages 56-60)
• 5. Property Documentation (Pages 61-70)
• 6. Explanatory Letters (Pages 71-75)
• SUCCESS METRICS:
• Target Outcomes:
• – Complete documentation package in 7 days
• – Zero initial documentation requests from lender
• – Approval within 30 days of submission
• – Smooth closing process with no last-minute issues
• Quality Indicators:
• – Lender compliments on package organization
• – Minimal follow-up questions
• – Fast processing time
• – Rate lock maintained through closing