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.
Applying for a mortgage to purchase or refinance a home can seem daunting, especially when it comes to gathering all the required paperwork. Lenders will request various financial statements tax documents, and other forms to verify your identity, income assets, and overall creditworthiness.
Having all your documents ready ahead of time will make the application process smoother and prevent delays. Here is a comprehensive checklist of the key documents you’ll need for your home loan application:
Identification Documents
Lenders are required to verify the identity of all mortgage applicants. At a minimum, you will need to provide:
- Driver’s license or other government-issued ID
- Social Security card or ITIN assignment letter
- Permanent resident card or visa, if applicable
You may also be asked for a passport, birth certificate, or other forms of identification.
Income Documentation
Lenders need to document and verify your stable income sources to ensure you can afford the monthly mortgage payment. Expect to provide:
Employment Income
- W-2 forms for the last 2 years
- Recent paystubs covering at least 30 days
- Bank statements showing deposit of income
- Verification of Employment (VOE) form
Self-Employment Income
- Federal tax returns for last 2 years
- Year-to-date profit and loss statement
- 1099 forms, if applicable
Other Income Sources
- Documentation verifying retirement/pension
- Investment account statements
- Court order for alimony or child support
- Rental agreement plus bank deposits for rental income
Tax Documents
Lenders will want tax records to confirm your income and viability as a borrower. Key documents include:
- Federal income tax returns for the last 2 years
- W-2s and 1099s for the last 2 years
- IRS Form 4506-C allowing lender to obtain tax transcripts
If you are self-employed, expect to provide business tax returns and schedules
Asset Statements
Lenders want to verify you have enough funds for the down payment and closing costs. Be prepared with:
- Last 2 months of bank statements for all checking/savings accounts
- Documentation of non-retirement investment accounts
- Most recent retirement account statements
- Records of proceeds from sale of other assets like property or stocks
Gift funds and cash saved at home may require additional documentation.
Liability Documents
Lenders need to understand your recurring debts and obligations. You’ll want to gather:
- Credit card statements showing monthly payments
- Student loan documentation with current balance and payment
- Recent auto loan monthly statement
- Other installment loans (personal loans, HELOCs, etc.)
Alimony and child support details may also be requested.
Property Information
If applying for a purchase, you’ll need details on the home such as:
- Signed purchase agreement with property address, price, and terms
- MLS listing sheet or property invoice
- Home inspection report, if available
For refinances, provide your most recent mortgage statement.
Additional Forms
As part of the application, expect to complete and sign:
- Uniform Residential Loan Application (Form 1003)
- Application disclosures and notices
- Borrower’s Certification and Authorization
- IRS Form 4506-C to obtain tax transcripts
Your lender may require other affidavits or statements specific to your situation. Be sure to fill these out completely and accurately.
Homeowners Insurance
Lenders will require a paid insurance quote showing coverage amounts and annual premium. You don’t need the full policy until closing.
What About a Preapproval?
Preapproval doesn’t require all the same documents. For a preapproval, you typically only need:
- ID
- Income verification such as paystubs
- Bank statements
- Tax forms
- Basic liability details
- Credit authorization
This provides the lender enough to assess your qualifications. Once under contract, the full documentation is required.
Tips for Document Collection
Compiling all these documents takes time. Make the mortgage process easier by following these tips:
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Open a file folder or digital folder to save everything in one place.
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Request paystubs, tax forms, and statements early before applying.
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Use online banking and investment accounts to easily access statements.
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Ask lenders what specific documents they require so you know what to focus on.
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Submit documents as soon as possible during the application. Missing paperwork causes delays.
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Let the lender know if you have any special circumstances upfront.
Preparing your documents for a home loan application takes effort. But having your financial records in order will demonstrate to the lender you are organized and ready to be approved. With a complete application package, you can feel confident about getting one step closer to homeownership.
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.
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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.
Mortgage Documents (What Do You Need To Apply?)
FAQ
What information do they need for a mortgage application?
Which three documents may be needed to complete a loan application?
What documents will a mortgage lender request of an individual before approving them for a loan?
What documents do I need to apply for a home loan?
When you apply for the loan, you’ll need the most current versions of all of the documents from the pre-approval, plus: Property information – Includes the property address, legal description, year built, and the type of loan you need. You’ll also need to include the intended use of residency.
What documentation do I need to get a mortgage?
To obtain a mortgage, you’ll need to provide a full set of documentation verifying your financial and personal life. Here’s a checklist of what’s needed for your mortgage application.
What are mortgage documents?
Mortgage documents evidence that a lender has a security interest in a home. Each step in the mortgage application and homebuying journey comes with its own set of mortgage documents to help make homeownership a borrower’s reality. Take the first step and get preapproved.
What documents do you owe a mortgage lender?
You will owe your lender a stack of documents once you apply – and during underwriting – that show you can repay the loan. A mortgage application typically requires a paper trail to verify: Income and employment. Assets and debts. Credit history. Identity. Rental history. Other information, such as divorce, bankruptcy or gift funds.