When applying for a mortgage loan, part of the approval process will require that you present documentation to the bank to support any claims you have made about your income and your readiness to assume the loan. Even if you have been pre-approved by a lender for a loan, you will still need to present this information over the course of the loan approval.You will want this process to go as quickly and smoothly as possible so no delays can derail your application. Before you make an offer on a home, it is best to be prepared with as much of this documentation as possible to make sure that your loan will be approved quickly and easily.
List of Mortgage Documents Required for Loan Approval
Many borrowers don’t have a clear picture of types of documents they will need to present to the bank. Different types of loans require different types of documentation, but in general, you should have the following on hand to present to your prospective mortgage loan officer.
Tax returns for two years. Most loan officers ask for income verification in the form of completed tax returns for the past two years. Three years’ worth of tax returns, complete with schedules and attachments, may be requested in some cases.
Proof of income. Lenders will require pay stubs for at least one month, as well as all W2 forms for borrowers and co-borrowers. However, new mortgage lending standards have resulted in most lenders asking to see pay stubs for the last two years. Additionally, if part of your income comes from rental property, the lender will request canceled rent checks and bank statements.
Bank statements for the last 30-90 days. One to three months’ worth of bank statements for every bank account and investment account you have, including savings accounts, online brokerage accounts and retirement accounts like a 401(k) will be required. In the case of a jumbo mortgage, three months is the time period most likely to be requested.
Proof you paid rent on time. First-time home buyers who previously rented will need to show 12-months’ of rent checks and bank statements to prove they were responsible for paying rent on time every month. In the case that the mortgage applicant can’t find these documents, he or she can provide the contact information for their landlord instead.
Paper trail on any gift money. If any gift funds are being used to make part of the purchase, the provider of that money will also need to provide documentation, including recent bank statements which prove they have the money to give. The giver must also sign an affidavit stating that the money is a gift, not a loan. You may also need to show a paper trail for the money, including deposit slips.
Credit account information. You will need to provide addresses and account numbers for any credit, loans or debts you have.
Address history. Supply a list of addresses for your residencies going back seven years.
Divorce decrees if you are no longer married. If you are divorced, copies of divorce decrees may be requested to prove that no other party has a claim on your property. Additionally, if child support is involved and the money is included as the mortgage applicant’s income, he or she will need to provide proof of the child’s age.
Self-employment. If you are self-employed, there are a number of additional documents you will be required to provide. This may include copies of checks from clients, statements from your credit card merchant and a profit and loss statement for the current year.
The sooner in the application process you gather these documents, the faster your loan approval process will go.
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