You may be contemplating whether it is the right time for you to buy or refinance a home. Regardless of your circumstance, before you get started with the loan process, it’s always best to be organized and begin gathering the documents needed to proceed. The mortgage loan process consists of a lot of paperwork, which includes providing documents needed for a mortgage that verify your income, employment history, address history, liabilities and assets. You provide most of this information through the 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. Specific documents are needed for particular types of mortgage financing, but here are some core documents you should have readily available depending on your individual scenario.
Proof of Income
- Borrowers who are employed through an employer generally must provide W2 forms from the past two years, one month's worth of pay stubs that show current income and year-to-date income, proof of any additional income (like bonuses), and federal tax returns from the past two years.
- Borrowers who are retired may need to provide the appropriate documents for their particular situation. These documents may include the original pension statement showing the amount awarded, longevity of the pension benefit, social security benefit statement , 1099 forms from the past two years, social security and pension, and two years of federal tax returns.
- Self-employed borrowers may need to provide two years of federal tax returns (personal and business) and all relevant schedules, K-1 forms, a profit and loss statement, and any 1099 forms required.
- Borrowers who have rental income may need to provide federal tax returns from the past two years, along with their Schedule E, copy of current lease agreements, most recent mortgage statements (if applicable) proof of homeowners’ insurance policies for each property, and proof of the most recent summer and winter property tax statements for each property.
Proof of Assets
- Borrowers may need to provide their most recent bank statements for all accounts (personal/ business), and the most recent investment account statements (401k, 403B, IRA, CD). Providing this documentation will verify your combined asset amount, funds for the down payment and closing costs, and cash reserves, if needed. As well as, current real estate holdings,including current market value, and the most recent mortgage statement (if applicable).
- Borrowers will need to provide a copy their driver's license (front and back), social security numbers, and authorization allowing the lender to pull a credit report.
- Throughout the loan process, be prepared to provide any additional paperwork requested by the lender and underwriter.
- All documents should be current and no more than 30 days old at time of underwriting.
Preparation is key to an accurate mortgage application and efficient loan process. If you have any questions or concerns, please contact 877.312.9033 to talk to a member from our team.