Everything You Need for Your Home Loan Application

If youre a first time homebuyer, then the process can seem overwhelming. This video series, presented by Chase Home Lending, translates relatable experiences into tips and tools that equip you for every step of your homebuying journey.

The mortgage application process is an important one and a little preparation can make it less stressful. The key is getting organized and rounding up paperwork early on to ensure a smooth loan closing.

Buying a home is likely the biggest purchase you’ll ever make Getting approved for a mortgage loan to finance your dream house can be complicated, but having all your documents in order will make the process smoother This comprehensive guide covers all the key documents you’ll need to provide to get your home loan application approved.

Loan Application Form

The first step is completing a mortgage loan application form. This requires personal information like your name, birthdate Social Security number contact details, marital status, residence history, employment history, income, assets, debts, and credit history. Be prepared to provide

Full legal name, birthdate, SSN, contact numbers
Marital status, number of dependents
Addresses for last 2 years, rental payments
Employers, positions, incomes for last 2 years
Tax returns, pay stubs, asset statements
Credit card, loan, alimony payments
Bankruptcies, foreclosures, lawsuits, co-signed loans

Providing accurate details upfront ensures a smoother approval process,

Identity and Residency Documents

Lenders will verify your identity, legal residency status, and home address. Have these documents ready:

Social Security card or ITIN letter
State or government issued photo ID
Permanent resident card if you’re not a U.S. citizen
Recent utility bill or bank statement with your home address

Income and Employment Documents

You’ll need to prove your income sources and employment history. Supply:

W-2s for the last 2 years
Recent pay stubs covering one month
Two years of federal tax returns
Business tax returns if self-employed
Proof of bonuses, overtime, or commissions
Rental property income documentation

Provide explanations for any gaps in employment.

Asset Statements

Lenders will want to verify you have enough funds to cover down payment, closing costs, and reserves. Provide current statements for:

Checking and savings accounts
Investment and retirement accounts
Documentation of gifts, grants, or loans for down payment

Explain any large deposits or transfers between accounts.

Credit History Documents

Your credit report provides key information, so be ready to submit:

Signed permission to check your credit
Explanations for any credit report inconsistencies
Bankruptcy discharge papers if applicable

Resolve any errors on your credit report before applying.

Property and Purchase Documents

Information about the property and sales contract is required:

Address of the property you want to purchase
Sales contract with price, terms, contingencies
Home inspection reports if available
Gift letter if using gift funds for down payment

Having a fully executed sales contract shows you’re serious about purchasing the property.

Additional Items as Needed

Unique situations may require a few more documents:

Divorce decree and guidelines for alimony/child support
Documentation of retirement account loans
Bank statements showing rent deposits if renting out current home
Listing agreement if selling current home before purchase

Be upfront about your particular circumstances to avoid surprises.

Preparing all required documents ahead of time can seem daunting. But having your financial life in order makes getting mortgage approval much simpler. Use this checklist to ensure you submit a complete home loan application package. Being organized with all your paperwork demonstrates you are ready to be a responsible homeowner.

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Mortgage loan documents checklist

The mortgage lender will want to verify that you have a steady source of income and the ability to make monthly payments. Heres what to expect:

Names and addresses of employers: Make sure to provide the complete name and mailing address. If you work for a large company that has departments in various locations, contact human resources and ask what address should be provided for employment verification.
W-2 income tax statements for the last two years: You should be able to find copies attached to your tax returns. If you filed taxes electronically, you or your tax preparer should have an electronic copy in your records.
Form 4506-C: The mortgage banker will give you this form to complete and sign, which gives authorization to access your tax return.
Pay stubs: Printed copies or proof of direct deposit, reflecting a minimum of 30 days of income.
Social Security: A copy of the award letter must be provided along with a recent check stub or copy of a bank statement if deposited electronically through direct deposit.
Disability payments: Form SSA-1099 for disability income for the two most recent tax years.
Pension income: A check stub and any forms showing duration of payments.
Maintenance income: Proof of alimony, child support or separate maintenance income if you would like for it be considered as a basis for repaying the obligation.

Tax returns: If you own a business, the lender will need the most recent two years of personal tax returns and any business returns you filed for your company (for example, 1120, 1120S, Schedule K-1/1065).
P&L: Year-to-date business profit-and-loss statement for current year if more than three months have passed since the end of the tax year.

Include all pages and schedules. The lender does not need copies of your state returns.

Fixed debt: Payments and balances for credit cards, mortgages, home equity lines of credit, outstanding student loans, auto loans, alimony, child support or any other fixed-debt obligations.

Statements: Bank statements for the last three months, including savings, checking and investment accounts. Be sure to copy all pages of your statements. If you dont receive paper statements, print your entire online statement. Dont forget to include all of your accounts (checking, savings and investments). The accounts must show that you have enough money to afford your down payment and several mortgage payments.
Gifts: For gift funds, include a gift letter and evidence of transfer or withdrawal. You will need to provide a detailed letter to explain any large deposits or withdrawals.
Stocks: Stocks and securities account statements for the last three months.
Closing Disclosure: Youll need the settlement statement if using funds from the sale of property.
Sale of assets: proof of ownership, proof of sale and proof of funds transfer.

This information can be found in income tax returns for the last two years verifying rental income. Provide leases if possible.

Brokerage statements: Provide documents for the last two years. Schedule B interest and dividend income (most current statement to ensure underlying deposits still exist and are earning at the same level).

Staying ahead can be one simple way to alleviate tension when working through the mortgage process. By preparing early, youll have more time to gather documents that may be missing or harder to track down.

Mortgage Documents (What Do You Need To Apply?)

FAQ

What does a bank need to approve you for a home loan?

Pre-approval requires proof of employment, assets, income tax returns, and a qualifying credit score. Mortgage pre-approval letters are typically valid for 60 to 90 days. Upon pre-approval, the lender will provide the maximum loan amount, which helps set a price range for the home shopper.

What information do they need for a mortgage application?

Mortgage lenders will usually require that you disclose all bank accounts. They will want to see your main current account to assess your spending habits and will also want to see your savings accounts to show where your deposit is coming from.

How much proof of income do I need for a home loan?

In general, you should expect to submit a paystub or two and a copy of last year’s federal tax return if you’re applying for a mortgage. We’ve listed below what documents you may need to show proof of income.

What information do I need to apply for a home loan?

Regardless of the application method (paper, online form, or verbal with your loan officer), this linked document contains the application with the information you’ll need to provide, including your residence history for at least two years and, if you’re a renter, your rent payment information.

What documentation do I need to get a mortgage?

To obtain a mortgage, you’ll need to provide a full set of documentation. Here’s a checklist of what’s required for your mortgage application:

What documents do I need for mortgage preapproval?

For mortgage preapproval, you’ll likely be asked to provide your two most recent W-2 forms as certain tax documents. These documents are needed to verify your income and show how much was taken out for tax purposes. You’ll likely be asked to provide W-2s for the last 2 years from current and past employers within that time frame.

What documents do you owe a mortgage lender?

To secure a mortgage loan, you will need to provide your lender with a variety of documents that verify: your income and employment, assets and debts, credit history, identity, and rental history. Other information, such as divorce, bankruptcy, or gift funds, may also be required.