Everything You Need for Your Mortgage Loan Application Documents Checklist

Getting approved for a mortgage loan requires gathering and submitting substantial documentation to prove your identity, income, assets, and overall financial situation Having all the right mortgage application documents ready can make the loan process go much smoother and prevent delays in getting approved.

In this comprehensive guide, we’ll cover everything you need to know to assemble a complete mortgage loan application documents checklist.

Key Documents Needed for Your Mortgage Application

While specific requirements may vary slightly by lender, here are the primary documents you should expect to include in your mortgage application paperwork:

Identification Documents

• Driver’s license or other government-issued ID
• Social Security card or ITIN assignment letter
• Permanent resident card/green card (if applicable)

Income Verification Documents

• W-2 forms for the last 2 years
• Recent pay stubs covering the last 30 days
• Last 2 years of federal tax returns
• Documentation of bonuses, commissions, and tips
• Proof of child support, alimony, or separate maintenance payments

Asset Documents

• Last 2 months of full bank statements
• Documentation of retirement accounts, investments, etc.
• Documentation of gift funds (if applicable)

Credit and Housing Payment History

• Explanation of credit inquiries and any derogatory credit events
• Bankruptcy discharge papers (if applicable)
• Proof of rent paid on time for the last 12 months

Property Information

• Purchase contract or lease (for refinances)
• Documentation of homeowners insurance
• Listing agreement if selling current home

Additional Details

• Uniform residential loan application
• Authorization for lender to pull your credit report
• Explanations and paperwork for anything that requires clarification

Let’s take a closer look at some of the key documents lenders will request.

Income Documentation

To confirm your income and demonstrate you can afford mortgage payments, lenders require:

• Pay Stubs – Most lenders require pay stubs covering the last 30 days. Submit all pages, even blank ones.

• W-2s – Provide W-2s for all employers over the last 2 years.

• Tax Returns – Submit complete federal returns for the previous 2 years. Include all schedules and attachments.

• Profit & Loss Statements – If self-employed, provide 12-24 months of P&L statements.

• Proof of Other Income – Submit documents confirming child support, alimony, pension, disability, rent received, etc.

Make sure your income documentation aligns with the amounts reported on your loan application. Any discrepancies could raise red flags and delay approval.

Asset Documentation

Lenders also require asset statements to verify you have funds available for the down payment, closing costs, and reserves. Typical requirements include:

• Bank Statements – Provide the last 2 months of statements for all checking, savings, and other asset accounts. Make sure no pages are missing.

• Retirement & Investment Accounts – Submit the most recent statements covering all IRAs, 401(k)s, mutual funds, stocks, etc.

• Gift Funds – Include signed gift letters from donors and proof of gifted funds deposited into your account.

• Cryptocurrency Accounts – Some lenders may request statements for Bitcoin, Ethereum, or other crypto holdings.

Have paper trails ready for any large deposits and withdrawals on your bank statements. Lenders want full documentation on where the money came from.

Real Estate & Housing Documents

Information about the home you’re buying and your housing payment history includes:

• Purchase Agreement – Provide a signed copy of the purchase contract on the home you’re buying.

• Refinance Property – For a refinance, submit a copy of your property deed or lease agreement.

• Homeowners Insurance – Have proof of homeowners insurance coverage ready.

• Rental History – Supply 12 months of on-time rental payments via cancelled checks, bank statements, or a letter from your landlord.

• Selling Current Home – If selling your current home, provide listing agreement and documentation on the sale status.

Credit Report and Other Details

In addition to income, assets, and real estate documentation, lenders also require:

• Loan Application – You’ll complete a standard 1003 mortgage loan application with personal and financial details.

• Credit Report Authorization – This grants the lender permission to pull your credit report from one or more bureaus.

• Explanations – Letters explaining credit inquiries, bankruptcies, late payments, job gaps, residence gaps, and anything else that needs clarification.

• Special Program Documentation – Extra paperwork for FHA, VA, USDA, and other specialized loan programs.

• Additional Requests – Be ready if your lender requests any other documentation specific to your situation.

Getting Organized with a Mortgage Documents Checklist

Compiling all required documents for a mortgage application can feel daunting. But having an organized system helps ensure you don’t miss anything. Here are some tips:

• Use a mortgage application checklist template to track documents you have vs. still need.

• Set up digital folders on your computer to save PDF files of bank statements, tax returns, pay stubs, etc.

• Create physical folders or envelopes for paper documents and receipts.

• Note any paperwork you’re waiting to receive and follow up on it.

• Allow plenty of lead time to avoid last minute scrambling.

Following a systematic process removes headaches and stress during the mortgage process. Just take it one step at a time!

Ask Your Lender for Guidance

Don’t hesitate to communicate with your loan officer or mortgage broker if you have any questions about required documents. They can provide a customized checklist and help make sure you submit a complete and accurate mortgage application package.

With meticulous preparation and organization, assembling your mortgage loan documents doesn’t have to be painful. Use this guide and your lender’s assistance to put together an application that sails smoothly on the path to home financing approval!

Frequency of Entities:
mortgage: 20
loan: 16
lender: 8
application: 7
documents: 12
income: 7
tax returns: 3
bank statements: 4
asset: 5
credit report: 2
property: 2
gift funds: 2
pay stubs: 3