Documents Needed To Apply For A Home Loan
You will need to submit all documentation necessary to get mortgage approval. This is easier than it sounds if you are aware of what to expect and your lender is well-organized. Here's a brief overview.
Please Provide The Following Information When Applying For A Loan
When applying for a mortgage, the first thing you need to do is to complete the federally required application. This linked document includes all the information that you will need, regardless of whether your application is made on paper, online, or verbally with your loan officer.
Full name, birth date, and Social Security number.
Marital status, number, and ages
At least two years of residence history. Rent payments are required if you are a renter. All mortgage, insurance, and tax figures for your primary residence, as well as all properties, are required if you are an owner.
Your employment history for the last two years. This includes your title, company name(s), address(es), telephone number(s) and phone number(s).
You must have at least two years of income history. You must include two years of income history if you have received bonuses, commissions, or self-employment. Over two years, most lenders will average self-employed and variable income.
Asset account balances include all checking, savings, and investment accounts.
Balances and payments for credit cards, mortgages, student loans, car loans, student loans, credit cards, and other fixed debts.
Confirm whether you have had any bankruptcies, foreclosures, or other problems in the last seven years. Also, confirm if you are a party to any lawsuits or co-sign any loans.
If any portion of your down payment is to be borrowed, confirm this with us.
Documentation Required For Loans:
The next step is to verify all information in the application and provide documentation. The checklist will be tailored to your profile by the lender. However, you can expect the following:
Authorization for your lender to access your credit report.
For credit inquiries, past addresses, and other derogatory information, you will need to send a letter of explanation.
Discharge papers are required if you have had a bankruptcy within the last seven years.
You will be asked to provide all documentation for any tax liens and other derogatory items in your credit report.
You will need 12 months' worth of canceled rent checks or bank statements if you are a tenant with a private landlord. This will show that your rent checks were paid on time. Your lender may be able to confirm on-time rent payments if you are a tenant with an institutional landlord.
If you are renting out your home and you want to keep it, you will need to sign a lease agreement. You also need proof that your first month's rent was deposited into your bank account.
You will need to sign a listing agreement if you plan to sell your current home before you can close on your new home.
Minimum 30 days for payment stubs
For all jobs performed in the last two years, you will need W2 forms.
The pages from the personal federal tax returns of the past two years.
All pages of federal tax returns from businesses for the past two years are required if you are self-employed or more than 20% owner in a business.
A year-to-date profit and loss statement is required for self-employed persons or those who own more than 20% of a business.
Renter income can only be counted if it is on your tax returns. Lenders may accept rental income that isn't yet on your tax returns because the rental property hasn't been rented yet. This is due to the fact that the down payment for the rental property was at least 30%. Ask your lender.
Divorce decrees are required if you receive (or pay) child support or maintenance. This income must typically be scheduled for at most three years after the loan closes.
All checking, savings, investment, and retirement accounts must have the most recent statements for the last two months. All pages must be included, even if one page is "intentionally blank" or if you feel there isn't any relevant information.
You must give all accounts if money is moved between accounts. Even if one account is being used for the down payment, the lender will review each line item on your two-month full account statements. The lender will ask you to document large withdrawals and deposits.
Your lender will ask all recipients and donors to sign a gift certificate confirming that the gift is not a loan if you are receiving gift funds. Some lenders require that you see the accounts of donors to verify the donor's gift-giving ability. Others only need to see funds in your account.