What Documents Do I Need When Applying For A Mortgage?

When applying for a mortgage, lenders will want to confirm your identity and creditworthiness. They may request various documents such as your driver’s license or proof of income. Being aware of what documents are necessary can streamline the application process and accelerate it when it comes time for closing date.

Tax Returns as Documents Needed for Home Loan Application
Your tax returns are your lenders’ primary and most essential source of information when determining whether you qualify for a mortgage loan. They allow them to determine how much money you make, where that money came from and what types of recurring and non-recurring sources of income you have.

Most mortgage lenders require you to submit your last two years’ tax returns as part of the home loan application. If you’re self-employed or operate a business, they may also request year-to-date profit and loss statements as well as other income documents.

Bank Statements Needed for Home Loan Applications
Lenders will also require copies of your bank statements, including recent ones from all savings and checking accounts, such as IRAs, 401(k) plans and brokerage accounts; retirement account statements and W2s; investment account statements from bonds, mutual funds, stocks or other types of assets.

Bank statements can speed up the mortgage application process and give lenders a thorough view of your finances. They’ll help them assess if you can afford your down payment and confirm that any cash deposits or payments to other accounts are appropriate and in line with your spending habits.

Extra Earnings and Debt List
Lenders require stability in your income to guarantee you can afford payments on your mortgage. This includes extra earnings such as alimony, child support and rental property income; as well as debts like credit card balances or car loans. It’s essential to have a detailed list of these additional earnings along with any court orders requiring payment.

Other documents you may need to prepare for a mortgage application include your most recent pay stubs, bank statements, tax forms and W-2 forms. According to Todd Huettner of Huttner Capital – an residential and commercial real estate lender – each document gives lenders an accurate picture of your earnings by showing them how much money you make and where it came from.

The mortgage documents needed for your application will depend on your financial situation and the type of home you’re purchasing. Self-employed freelancers or independent contractors might have to submit tax returns, year-to-date profit/loss statements, as well as other income documents like sales or partnership agreements.

Renters or homeowners alike must show their landlords 12 months of canceled rent checks and/or bank statements to prove that you have paid your lease on time. Doing this demonstrates your good faith by paying on time in the past.