Property Information (if you already have a contract on a house)
- Purchase Agreement.
- Copy of legal description and MLS sheet.
- If you are selling your current home, copy of listing contract.
- If you have sold your current home, copy of settlement statement (ALTA Settlement Statement)
Income & Assets
- Pay stubs for the last 30 days that show year-to-date earnings.
- For the past two years:
- Names and addresses of each employer.
- Statements for each bank, investment and retirement account for the last two months (all pages)
- If you have made any large deposits to your accounts: Explanation and source for deposit.
- If large deposit was a gift: Signed gift letter (lender can supply), Copy of gift check& Copy of deposit receipt.
- If you own more than 25% of a business: Corporate or partnership tax returns.
- If self-employed: Federal Tax returns for the last two years (with schedules) & Year-to-Date Profit and Loss Statement prepared by an accountant.
- If you own other property: Federal Tax returns for the last two years and current rental agreements.
- If you are retired: Pension Award Letter.
- If you receive Social Security: Social Security Award Letter.
- If you are counting child support as income: Copy of divorce settlement & Copy of twelve months of cancelled child support checks.
- Vendor/Lender names, balances and monthly payments on all outstanding loans.
Explanation of credit report anomalies, including:
- Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.
- Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers).
- Copy of DD Form 214, Report of Separation.
- Color Photo ID and proof of Social Security number.
- Residence addresses for the past two years.
- If applicable, a copy of your divorce decree.
- If you are not a citizen, a copy of the front and back of your green card or visa.
A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower.
Down Payment & Closing Costs
Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.
Take extra care to document the sources for any monies to be used for the down payment or closing costs.
Acceptable Down Payment & Closing Costs Sources
- Cash in a bank account
- Mutual funds / stocks / IRA / 401(K)
- Proceeds from the sale of another property
- Gift from an immediate relative
Collect information about your personal assets that add to your net worth and help to prove your credit worthiness.
Common Assets Considered in a Mortgage Loan Application
- Stocks, bonds, mutual funds, 401(K) and retirement accounts
- Life insurance
- Personal property estimate – cars, boats, antiques, jewelry, etc.
- Other real estate or property
Income and Employment
The lender will want to confirm your current gross income and have evidence of stable employment. Documentation requirements vary depending upon a number of factors – including the source of income (hourly, salary, salary + bonuses, salary + commission, commission, self-employed, etc.).
Your lender will want to review a list of all your current debts. This along with your credit report will provide the lender with a snapshot of your obligations. The lender will want to confirm that you will not be overextended when the mortgage payment is added to your current debt load.