Mortgage lenders require certain paperwork that verifies every single aspect of your life: income, debts, assets, and more.
Being on the lender’s best side is a good idea. A substantial step in the right direction is by having everything you need before you apply for a mortgage. The lender will request the following documents, so gather them before you apply for a mortgage. Here is a mortgage checklist you should use before shopping for a mortgage.
- W-2 – Lenders require the most recent W-2 wage and tax statements, but some will need two years of W-2s.
- Profit and Loss Statements (or 1099, if you own a business) – Self-employed borrowers may have to submit a current-year profit and loss statement.
- Payment Stubs – In order to verify that you make as much as you claim you make, loan guidelines say to have one month of verified income.
- Tax Returns – Including all the pages and schedules will be expected. The returns will be scrutinized for unreimbursed employee business expenses, self-employment business losses, and signs of loan fraud.
- List of Debt – On your list should be credit card debt, student loans, car loans, and child support payments.
- List of Assets – Including bank statements, mutual fund statement(s), real estate, automobile title(s), brokerage statement(s), and records of any other investments or assets.
- Cancelled Checks – If any checks have bounced, your mortgage company wants to know about it. They want to know if your rent payments are up to date. If you don’t have those checks from months or even years ago, you can supply the mortgage company with the name of your ex-landlord.
Mortgages may seem like stressful contracts to obtain, but with the right preparation, they don’t have to be! Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.