What Documents Are Needed When Applying for a Mortgage?
Applying for a mortgage can be an overwhelming experience. To avoid last-minute hassles, get all the paperwork in order even before identifying the home that you intend to purchase. Here are some documents that you must have at hand when applying for mortgages.
1099s and W2
These two documents provide proof for your earnings during the past two tax years. If you are in doubt about which of them to take with you to the bank, scan your tax return since some lenders prefer it.
Sometimes, your most recent paychecks may be required. Some banks can even ask for proof about your earnings in the last two years. In case you get paid via direct bank deposits, get printed versions of your paychecks. This could take some time, thus the need to start early.
If you receive an early inheritance to help you make a down payment for a house, you will need a gift letter. The document explains that, indeed, the money is a gift rather than a loan. The letter addresses the value of the inheritance, the address of the house that you intend to purchase, and the date that the funds got wired.
Proof of Debts
Student loan statements, child support agreements, and credit card statements are some of the debt proof documents that you may need when applying for a mortgage. You should reveal all your debts because failure to do so puts your mortgage request at the risk of getting rejected.
As a prospective home buyer, you must provide your bank statements. This will enable the lender to undertake relevant due diligence procedures. Bank statements are typically evaluated to ascertain that your financial transactions meet the provisions of the USA Patriot Act.
Records of Additional assets
You should provide proof of other assets that you own. These include mutual fund statements as well as documents relating to other properties that you own.
A Copy of Your Driving License
This will be required twice; when filling out the mortgage application forms, and when closing the deal.
If you are interested in getting pre-approval for a mortgage, contact us at 702.545.0020.