Documents you need when applying for a mortgage
If you’re thinking of buying a home, paperwork is going to play a big role in securing your mortgage. This information is critical to helping your lender verify your income and assets. Underwriters have strict requirements they must follow that may require verification at several points during the application process. But there’s good news – the professionals at ConsumerDirect Mortgage know all the ins and outs and will help you every step of the way. At a minimum, these are the initial documents you need when applying for a mortgage:
1. YOUR INCOME AND EMPLOYMENT HISTORY
Step number one is to find the most recent pay stubs and the last two year’s W-2 and tax returns for each person on the loan application. This basic information speaks to your job stability and gives insight to your lender about whether you’ll be able to make monthly mortgage payments.
2. YOUR DEBT AND MONTHLY EXPENSES
When applying for a mortgage list any outstanding loans you’re currently repaying – including all auto loans, mortgages, student loans, credit cards, and child support or alimony payments. Be sure to include the creditor’s name, address, account numbers, minimum monthly payments and current account balances. Lenders will use this information to determine your debt-to-income ratio, or the percentage of your monthly income that’s spent on paying your debt.
3. WHERE YOU’VE LIVED
One of the easiest to find documents you need when applying for a mortgage is a list of where you’ve lived for the past two years, including landlord names and addresses if you don’t already own a home.
4. YOUR ASSETS
Lenders need to see your bank account statements for all checking, savings and money market accounts, homes or properties you currently own (including the lender’s information, account number, monthly payment and what you owe on the loan), and other asset statements like stocks and bonds, IRAs, CDs or any other securities that could be used for a down payment. You should also provide pension, social security or disability payments if applicable, dividend earnings, and bonuses. They’re required to verify that you have the necessary funds in place for closing costs, down payment, and cash reserves (if required) for the loan you’re trying to obtain.
JUST ONE MORE THING
Even with these documents ready, your lender may ask for other supporting information. It’s common for loan officers to need additional documentation as they work through your loan application. And if you own your own business or work contract or freelance, you’ll also need 1099 forms and profit and loss statements for at least two years. The very best thing you can do when applying for a loan is to avoid making big changes or taking more cash out of your accounts than usual.
Although much of this information can be verified online with your approval, it won’t reduce the amount of documentation needed to ensure you’re qualified to pay back the loan. But no matter if you prefer paper documents or sharing information electronically, ConsumerDirect Mortgage is here to streamline the process, answer all your questions, and help secure a mortgage that’s right for you and your financial situation.