We know with any purchase process gathering all of the necessary documents can be quite hassle even for the most organized. All lenders want and need detailed information about your finances to determine if you quality for a home loan.
We’ve provided a basic list that can help assist with this daunting task. Keep in mind each situation is uniquely different so if you don’t know what you need ask your lender.
Proof of income
Lenders want to know that you’ll be able to repay the loan. Depending on your income history and size of loan, you may have to show additional documentation
- Photo ID
- Social Security Number
- Contact Information for your insurance agent
- Previous year’s W-2 Form (1099 if contract basis) (1040 form)
- Bank Statements (Be prepared to show proof of any cash deposits made into your account)
- Your most recent pay stubs
- Profit and Loss if self-employed
- Earnings outside of regular job (Child Support or Alimony) -Divorce Decree
- Employment contract showing vesting schedule
- Credit Report (Lender will generally pull this)
Your debt can seriously impact your debt-to-income ratio which can be Up to 57% FHA Up to 50% for Conventional across the board*
- Debt Payments and Balances for credit cards, student loans, mortgages, car loans, credit inquiries or any other fixed debt obligations
Having assets just in case unexpected expenses occur after you close on the house is a factor in the home buying process.
If you received money towards the down payment as a gift, you may be required to provide documentation/letter stating it was a gift and not a loan.
Bank Statements, investment records, retirement accounts, real estate, auto titles, and any other investments require that you provide documentation.
This can include a signed 4506-T form, that allows your lender to get a transcript of your tax returns from the IRS.
If you have filed bankruptcy in the past several years, you may be asked for your bankruptcy discharge papers.
Documentation that you’re involved in any lawsuits or co-sign on any loans
If you’re renting out your current home a lease agreement and income received may need to be provided.
If you’re a renter with a private landlord, 12 months of cleared checks on time may be required or a form confirming on-time rent.
The mortgage industry is striving to make this process more streamline by offering services that are more automated and user friendly.