Common MortgageDocuments

©2017 Discover Bank, Member FDIC | NMLS ID 684042

2Contents

Introduction ......................................................................................................................................3

Document Checklist ........................................................................................................................4

Document Requirements ................................................................................................................5

About You .................................................................................................................................... 5About Your Home ......................................................................................................................... 6About Your Income ....................................................................................................................... 7About Your Income—Other Sources ............................................................................................ 8-9

3

Introduction

In order for Discover®

Please note: You will NOT be asked for all of these documents. We may also ask you to provide documents that are not mentioned in this brochure.

What you can expect:

Your Personal Banker will provide you with an initial list of documents we need to get started along with instructions on how to send us your paperwork. Every loan is different, so we may request additional documents as we move through the loan process.

As a reminder, here’s where you can send your documents:

Our Secure Website*: DiscoverHomeEquityLoans.com/Login

You may also send them via:

Web: DiscoverHomeEquityLoans.com/upload

Mail: P.O. Box 29029, Phoenix, AZ 85038

Overnight mail: 2402 W. Beardsley Rd, Phoenix, AZ 85027

Questions?

If you have questions at any time during the loan process, please reach out to your Personal Banker for help.

*Manage your loan application online. On our secure website, you can check your loan status, check your to do list, upload documents, and more. Refer to the Online Account User Guide for details.

Origination Processing Underwriting Closing Funding

to process your home equity loan application, we will need some information about your property and finances. This brochure includes a handy checklist along with a list of requirements for common mortgage documents that we may ask you to provide.

4

Document Checklist

Please refer to the Document Requirements section for additional details.

About You Government-issued ID Trust agreement, if your property is held in a trust Voided check or ACH Form, if you will be receiving

cash out

About Your Home Current mortgage statement Homeowner’s insurance declaration page Flood insurance declaration page, if your property is in a

flood zone Homeowner’s association statement, if you pay

homeowner’s association dues

About Your Income

Employed Most recent paystub with year-to-date earnings Two most recent years of W-2s If you earn more than 25% of income from commissions,

also send your two most recent years 1040s (US Individual Tax Return) with all schedules

Self-Employed: Sole Proprietor Two most recent years of 1040s with all schedules Year-to-date Profit & Loss statement

Self-Employed: Partnership Two most recent years of 1040s and 1065s (US Return of

Partnership Income) with all schedules Two most recent years of K-1s (Partner’s Share of

Income, Deductions, Credits, etc) showing ownership Year-to-date Profit & Loss and Balance Sheet statements

Self-Employed: S-Corporation Two most recent years of 1040s and 1120Ss (US Income

Tax Return for an S Corporation) with all schedules Two most recent years of K-1s showing ownership Year-to-date Profit & Loss and Balance Sheet statements Most recent 2 years W-2s, if applicable Most recent paystub(s) with year-to-date earnings

Self-Employed: C-Corporation Two most recent years of 1040s and 1120s (US

Corporation Income Tax Return) with all schedules Year-to-date Profit & Loss and Balance Sheet statements Most recent 2 years W2s, if applicable Most recent paystub(s) with year-to-date earnings

About Your Income – Other Sources

Alimony, Separate Maintenance, or Child Support Divorce decree, Legal Separation Agreement, Court

Order, or Voluntary Payment AgreementYou may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan

Notes Receivable Income Promissory note with cancelled checks for past 12

months

Rental Income Most recent lease agreement

Retirement Account Income Statements for each employer, depository, and/or

brokerage account

Social Security, Disability, or Pension Income Social Security Award Letter and/or Pension Award Letter and/or Prior Year’s 1099

Trust Income Trust agreement or other trustee statement documenting

two-year payment history and current receipt of income

5

Document Requirements

As you gather the paperwork your loan team requests from you, we encourage you to review the information below. It will help you to identify the specific details we’ll be looking for as we review your documents.

Please note: The term “borrower” refers to borrower and co-borrower, if applicable.

Government-Issued IDRequired for all borrowers and non-borrowing spouses (in Spousal-Sign and Community Property States)

What we need:• We will accept any government-issued ID, such as a driver’s license, passport, or

permanent resident card• Only a copy of the front of the ID is neededNote: In some instances, we may need to request verification of your Social Security Number as well. If this is needed, we will ask you for a copy of your social security card.

Expired IDs will not be accepted

Trust Agreement (or certificate, in some states)Required if the loan will be titled in the name of the trust

Where to obtain: The attorney that administers your trust

What we need:• Fully executed (signed and notarized) trust agreement• In those states in which Trust documents cannot be provided, a Trustee

Certification is acceptable as long as all requirements to the right are met

Voided Check or ACH FormRequired if you will receive loan proceeds directly transferred into a checking account

Where to obtain: If you don’t have a voided check, you may complete our ACH Form or you may ask your bank for an Account Verification letter

What we need:• Voided check or completed ACH form• Personal checking account or sole proprietor (as per tax return) business

checking account only

• Borrower must be listed as trustee• Trust name must match vested

name on property• Indicate the trust is revocable• Indicate the trustee has the power

to mortgage/encumber assets held in the trust

• List all beneficiaries (as permitted by state law)

• Signed and notarized

• Match account holder name of at least one borrower

• Bank name• Bank address• Routing number• Account number

• Match borrower name on loan application

About You

6Document Requirements

Current Mortgage StatementRequired for the property being used to finance this loan and any other properties owned by the borrower(s)

Where to obtain: Your mortgage lender(s)

What we need:• Most current available• Less than 45 days old at time of application

Homeowner’s Insurance Declaration PageRequired for all properties owned

Where to obtain: Your insurance agent

What we need:• Most current available• Note: An insurance binder is also acceptable• Mortgagee clause must be updated to show Discover® as loss payee prior to

loan closingExpired policies will not be accepted

Flood Insurance Declaration PageRequired if the subject property is in a flood zone

Where to obtain: Your insurance agent

What we need:• Most current available• Policy must be effective through the funding date of the loan• Mortgagee clause must be updated to show Discover as loss payee prior to loan

closingExpired policies will not be accepted

Homeowner’s Association (HOA) StatementRequired for all borrowers who pay homeowner’s association dues on subject property

Where to obtain: Your homeowner’s association

What we need:• Most current available

• Borrower name (at least one)• Property address• Policy number• Effective dates of policy• Coverage amounts• Annual premium• Premium due date

• Borrower name (at least one)• Property address• Policy number• Effective dates of policy• Coverage amounts• Annual premium• Premium due date

• Borrower name (at least one)• Property address• Amount of dues• Payment frequency

• Borrower name (at least one)• Property address• Current mortgage balance• Monthly payment amount• Payment breakdown (principal,

interest, taxes, insurance, and assessments)

• Escrow information (if applicable)• Interest rate• Loan type

About Your Home

7Document Requirements

Most Recent Paystub with Year-to-Date EarningsRequired for all borrowers who are wage earners

Where to obtain: Your current employer

What we need:• Must recent consecutive paystub(s) covering at least two weeks of employment• Less than 30 days old at time of application

W-2 Forms for Previous Two YearsRequired for all borrowers who are wage earners

Where to obtain: Your employer or your tax files

What we need:• Must represent the latest two-year period • Note: Handwritten forms will not be accepted

Tax Returns for Previous Two Years with All Schedules—Includes IRS Forms 1040, 1065, 1120S and/or 1120Required for all borrowers who are wage earners in a family business; self-employed; or who receive income from commissions, renters, boarders, interest and dividends, automobile allowances or expense accounts; and Social Security (in some cases)

Where to obtain: Your accountant or your tax files

What we need: • Must represent the most recent two year period, include all schedules (including

K-1 if in a partnership)• Note: Handwritten returns will not be accepted

Year-to-Date Profit & Loss and Balance Sheet StatementsRequired for all borrowers who are self-employed in a partnership, S corporation, or C-Corporation

Where to obtain: Generally, the financial controller of your business will have the latest copies of these documents. Your banker can provide a template if needed.

What we need:• Less than 90 days old at the time of application

• Borrower name• Employer name• Social security number

• Borrower name

• Business name• Year-to-date information for the

current year• Signed

• Borrower name• Employer name• Beginning and end dates of

paystub• Total pay for the paystub period• Current and year-to-date amounts

About Your Income

8Document Requirements

Divorce Decree, Legal Separation Agreement, Court Order, or Voluntary Payment AgreementRequired if you receive alimony, child support, or separate maintenance payments You may choose not to provide this documentation if you do not wish to include this income for the purpose of financing your loan

Where to obtain: Your divorce attorney

What we need:• Alimony or Separate Maintenance Income—

— A complete and finalized copy of one of the following: divorce decree, legal separation agreement, court order, or voluntary payment agreement

— Verification of receipt for previous 12 months (e.g. cancelled checks, deposit slips, tax returns, etc)

• Child Support Income— — All of the above listed under Alimony or Separate Maintenance Income— Verification of continuance (DOB included in order/decree or copies of birth

certificates)

Promissory Note with Cancelled Checks for Past 12 MonthsRequired if you receive notes receivable income

Where to obtain: Your attorney

What we need:• Evidence that payments have been made to the borrower (or delegated agent

on their behalf) or deposited into an account with borrowers name for the most recent 12 months (e.g. cancelled checks, deposit slips, etc)

Lease AgreementRequired if you receive rental income

Where to obtain: If your copy is lost, check with your tenant(s).

What we need:• Must be the current lease or the original lease with proof of receipt• Please note: We will also require your most recent two years 1040s with all

schedules Important note: You need to be the occupant of the subject property for the home equity loan

• Borrower name• Payment amount

• Names of all parties involved• Address of the property being

leased• Start and end dates of the lease• Lease amount

• Borrower name• Judges signature or the County

recording information

About Your Income—Other SourcesThe following documents may be required if you will be using this income for the purpose of financing this loan.

Continued on next page

9Document Requirements

About Your Income—Other Sources ContinuedThe following documents may be required if you will be using this income for the purpose of financing this loan.

Retirement Statements for Each Employer, Depository, and/or Brokerage AccountRequired if you receive income from a 401k/Annuity/IRA

Where to obtain:Company that administers your account

What we need:• Copy of most recent statement showing set distribution and account balance to

verify three year continuancePlease note: We will also require your most recent two years 1040s with all schedules

Social Security or Pension Award LetterRequired if you receive social security, disability, or pension income

Where to obtain: Social Security Administration or the organization that administers your award plan

What we need:• Most recent available; must represent the current yearPlease note: For social security and pension earners, the most recent year 1099 is also acceptable

Trust Agreement or Other Trustee StatementRequired if you receive trust income

Where to obtain:Your attorney who administers the trust

What we need:• Most recent trust agreement or other trustee statement that documents two-year

payment history and current receipt of income

Bank Statements or Cancelled Checks for Past 12 MonthsRequired if you are a cosigner on a loan but someone else is making payments and you wish to have this debt removed from your debt-to-income ratio

Where to obtain:3rd party’s bank and/or lender

What we need:• Bank statements or cancelled checks from the person who has been making the

payments on this cosigned loan; if payments are being made electronically, we will also accept a bank account printout that contains a summary of payments

• Must reflect most recent 12 month period

• Borrower name• Account balance• Distribution amount• Frequency of distribution

• Borrower name• Award amount• Frequency of payment

• Trust name• Amount of trust• Frequency of distribution• Duration of payments

• Account number• Payment amount• Payee• Payer