Preparing Your Mortgage: Essential Documents to Gather

You may be contemplating whether "now" is the right time for you to buy or refinance. No matter what your circumstance, before you get started with the loan process, it's always best practice to be organized and begin gathering the documents needed to proceed.

The mortgage loan process primarily consists of "mortgage paperwork", which is predominantly about providing documents needed for a mortgage that verify your income, employment history for the last 2 years, address history for the last 2 years, liabilities and assets. You provide a great amount of this information at application, however, there are several additional documents you may need to provide depending on the type of loan you are applying for and where you are in the loan process. The mortgage loan process primarily revolves around verifying key aspects of your financial situation. This includes your income, employment history (last two years), address history (last two years), liabilities, and assets. While much of this information is provided during the application, additional documents may be required depending on the type of loan and where you are in the process.

Here’s an overview of the essential documents to prepare based on your specific circumstances:
 

Proof of Income

• For Employed Borrowers
  • W-2s from the past two years.
  • Pay stubs for the most recent month, showing current and year-to-date income.
  • Proof of additional income, such as bonuses, commissions, or part-time earnings.
  • Federal tax returns and applicable schedules for the past two years (if requested).

 

• For Retired Borrowers:
  • Original pension statement showing the awarded amount and benefit duration.
  • Current pension statement and Social Security benefit statement (current year).
  • Two most recent years’ 1099s for Social Security and pension income.
  • Federal tax returns for the past two years, if applicable.

 

• For Self-Employed Borrowers:
  • Federal tax returns (personal and business) for the past two years, including all schedules and K-1s.
  • Current year-to-date profit and loss statement.
  • Any relevant 1099s.

 

• For Borrowers with Rental Income:
  • Federal tax returns for the past two years, including Schedule E.
  • Copies of current lease agreements.
  • Most recent mortgage statements (if applicable).
  • Proof of homeowners’ insurance policies for each property.
  • Current summer and winter property tax statements for each property.

Proof of Assets

• Most recent two months’ bank statements for all personal and business accounts
• Current investment account statements (e.g., 401(k), IRA, CDs).
• Documentation verifying down payment funds, closing costs, and cash reserves, if applicable.
• Records of current real estate holdings, including market value and most recent mortgage statements (if applicable).

Other Documentation

• Copy of your driver’s license (front and back).
• Social Security numbers (if not included in other documents).
• Authorization for the lender to pull your credit report.
• Any additional paperwork requested by the lender or underwriter during the process, provided as quickly as possible.

Important Reminders

Make sure all documents are current and no more than 30 days old at the time of underwriting. Staying organized and responsive throughout the process is crucial for ensuring an accurate mortgage application and an efficient loan process. If additional paperwork is requested by the lender or underwriter, provide it as quickly as possible to avoid delays. Preparation and timeliness can make all the difference in keeping the loan process on track. Experienced Loan Officers are available to answer your questions and guide you through every step. Reach out today for assistance!