Home loans are packed with paperwork. Worse yet, some lenders are extremely detail-oriented. Even the smallest oversight on your part could add days to your closing date.
Understanding the paperwork involved in the loan process will prevent a closing delay and ensure that your loan proceeds without a hitch. Here’s an in-depth look at all of the documents you’ll need to get the keys to your dream home in your hands.
Completing the Mortgage Application
Without all the attachments, the mortgage application is a lengthy piece of paperwork itself! Here are some documents you should have available to make the process painless:
- Your government-issued ID
- The purchase price of the home
- Details about the type of mortgage you hope to receive
- Information about legal concerns that could hinder the loan process
- The purchase contract
- Any other pertinent information advised by your mortgage broker
Income Verification
Your lender must know you have enough incoming funds to afford your monthly mortgage payments. Here’s a list of income-related documents that they’ll request:
- W-2 forms (two years is standard)
- Recent pay stubs
- Up to three years of income tax returns
- IRS Form 4506-C, which gives the lender permission to request your tax returns directly from the IRS
The requirements are different for self-employed borrowers, so if this is you, contact your mortgage broker to determine what forms of documentation you’ll need to verify your income.
Assets and Debts
Understanding your assets and debts helps your lender calculate your debt-to-income ratio, which is a primary factor in mortgage eligibility. Here’s what you’ll need:
- Recent bank statements to verify your ability to cover the down payment and closing costs
- Investment account records, if applicable
- Gift letters, if applicable
Credit History
While there isn’t much official paperwork that goes along with this, you’ll still need to give the lender permission to run your credit reports. If a red flag shows up, be prepared to produce some sort of documentation indicating that the issue has been addressed.
Contact MortgageDepot Today!
This list is intended to prep you for the mortgage process, but it isn’t all-inclusive. Contact us today to learn more about how to be ready for your home loan application!
