Mortgage applications can be overwhelming. The key is to start gathering these documents now — before you find the home you love and are forced to delay making an offer because you’re not yet pre-approved.
Here is a list of the most commonly needed documents. Be forewarned there may be additional documents required depending on your situation.
W2s and 1099s
This one is obvious, but you’ll want hard-copy proof of your earnings for the previous two tax years. When in doubt, just scan your whole tax return; some mortgage lenders prefer to have your entire return anyway.
Most of the time, your last two pay stubs will suffice, but some banks might ask for up to two years’ worth of payment records. If you receive payments via direct deposit, printable versions of your paycheck might take some legwork to track down, so it’s best to get on top of this one early.
Are you getting an early inheritance from your parents to help cover your down payment? They’ll need to write a gift letter making clear that the money is indeed a gift and not a loan. The letter should be addressed to the mortgage company and include, among other elements, the dollar amount, the address of the property you hope to purchase, and the date the funds were transferred.
Proof of Debts
Credit card statements, student loan statements, car loan statements, child support agreements … you need records of them all. Honesty is key here; “forgetting” to include debts can put your loan approval and closing in jeopardy.
As a buyer, you’ll need to offer bank statements as part of your lender’s due diligence procedures. They’ll look to confirm that your money is “seasoned” (essentially confirming that any financial transfers were completed legally) as a requirement of the USA Patriot Act.
Records of Additional Assets
You’ll need to gather proof of any other assets, such as mutual fund statements and documents relating to any other real estate or property you own.
Copy of Your Driver’s License
You’ll actually need this twice: once during the initial mortgage application process and once at closing.
If you’re interested in getting pre-approved for a home loan, give us a call at 702.545.0020.