A lot of people will agree with me when I say:
Getting a mortgage is daunting and confusing. This is because it involves a lot of paperwork for the past few years. Previously, lenders didn’t require plenty of documents for verifying the borrower’s identity, income, and liabilities.
In recent times, lenders have strict policies and demands numerous documents. This is because the lenders have to determine whether or not they can repay. To increase the chances of getting approved for a mortgage, you need to bring certain documents.
Wondering what documents you will need? In this post, we have talked about the required documents in detail.
Employment and Income
The first document you will need to get a mortgage is income proof. The income document should show how you get paid. For employees, you will need to provide a copy of W-2 forms along with a copy of recent payroll stubs.
If you are self-employed, you will need to provide an updated profit and loss statement. Besides this, you will have to provide two years of accounts and form 1099s.
Debts and Expenses
Another document you must have is related to expenses and debts. This is essential for lenders as they will have to calculate the debt-to-income ratio. For this, you will have to list all your expenses and debts including:
- Auto loans
- Student loans
- Credit cards mortgage
- Credit history
- Records of regular payments
- Utility bills
Assets and Bank Statements
You should have a copy of the bank statements of at least 60 days. This is used for verifying your income, source of down payment, and savings balances.
If you have investment or retirement accounts that you have mentioned on the loan application, you are required to provide 3 months’ statements.
The lenders want to get access to your financial situation. For this, you will have to get form 4506-T. This will enable the lenders to get a copy of your tax returns directly from the IRS. Mostly, the lenders want to see at least 2 years of tax returns.
To assess whether you are suitable for a mortgage or not, the lender will ask you to bring your credit report. Before applying for a mortgage, it is crucial to know what your credit report looks like. You can ask for a full credit report without any fees from nationwide credit reporting companies. Having a copy of your credit report is useful for reviewing and correcting any errors.
Payment of Rent
For renters, it is important to show payments for 12 months. You should give the contact information of the landlord.
In case you are divorced, you must have court orders ready including divorce decree for alimony payments and child support.
If you are still confused about the information you should bring, feel free to contact our customer support service. Or you can bring information or documents to us and we will guide you through the process.