What Do You Need for a Mortgage Application
Whether you are purchasing a home or refinancing your existing mortgage there are some core documents you will need to prepare as you begin the application process. This article will describe what you will need.
First, it is important to know preparing these documents ahead of time will save you possible headaches down the road. Most lenders will require the same or similar documents so no matter where you go for a mortgage these documents will be requested.
These documents are necessary to prove your credit worthiness and the ability to pay the loan back. Once these are provided your loan application along with these documents will be sent to an underwriter to review and approve. Sometimes, additional documents may be requested or further explanations on what they are seeing.
For income verification you will need to provide 1-2 years of your W2s and a current month’s worth of paystubs. If you are self-employed you will need to provide 2 years of completed federal tax returns and in some instances 2 years of business returns.
For any assets that you may have you will be asked for 1 – 2 months of statements to show you have enough money for the down payment and closing costs. This can include bank accounts, investment accounts and retirement accounts. Remember, the mortgage lender will be reviewing your credit report and detailing out your money debt obligations. If you are receiving a gift, you will need to complete a gift letter and on request, may ask for the donor’ bank statement’s showing their ability to gift the funds.
If you are divorced and have or receive any monthly child or alimony support, you will need to provide a copy of your divorce decree at a minimum.
Finally, you will need to provide proof of who you are by providing a copy of your driver’s license or passport.
All these documents can be scanned and uploaded to the lender when deemed appropriate.
Also, many of these documents may be requested by the lender to issue a preapproval as well so gathering sooner than later is in your best interest.
As always, speak to a qualified and trusted mortgage professional early in the process. You can contact your Home Loan Advisor at Hall Financial anytime.