Full Documentation refers to the amount of Documentation you will present and be able to verify, to qualify you for a Home Loan. With Full Documentation, also known as "Full Doc" you will need to be able to verify both your Income and your Assets.
Full Documentation loans are considered lower-risk than Stated or No Income loans, therefore the interest rates are more favorable.
When applying for a full documentation loan have the following with you at time of application.
- Most recent paycheck stubs covering 1 month
- Last 2 years W-2's
- Most recent bank and retirement account statements
- Name of homeowners insurance agent (for Refinances)
- Name and number of Landlord (for purchases)
With a full documentation loan you will generally have to provide your mortgage professional with the last 2 years of W2's or tax returns and your last full month of pay-stubs. Many lenders will also do either a verbal or a full verification of employment to verify that you are still employed and to check the accuracy of the income documentation being provided to them.
Full documentation of assets generally means 2 months of bank statements, 401k/IRA/403B information or any other account with a cash value are required to document assets. Assets are required to be "sourced" and "seasoned". This means the lender wants to know your assets claimed are yours and that you have the capacity to save.
Some lenders will allow for 12 - 24 months of Bank Statements to qualify for "Full Doc". Check with your mortgage professional.