What are the documents you need to give to a lender for a home loan?
Most homeowners need to secure a home loan to purchase a home and depending on your financial situation, there are several documents you might need when you apply for a home loan, including your tax returns, pay stubs, bank statements and credit history. To qualify for a home loan, the lender will request paperwork for your mortgage application that proves things like how much money you make and your debts. The exact forms you need for a home loan depend on your situation. For example, someone who is self-employed will likely have to provide different forms than someone who is employed by a company.
If you’re applying for a mortgage, it’s a good idea to start prepping your financial documents. Below is a list of documents the lender will need
Income Verification:
• Documentation depends on the types of income you receive. You may have multiple sources of income so be sure to collect the documentation required for every source of income you receive:
Salaried Employees:
• Pay stubs with Year-to-Date earnings for all borrowers for the last 30 days.
• W-2 forms from all employment - for all borrowers -for the past 2 years.
• Names, phone numbers, and addresses of each employer for the past 2 years.
If you receive Commissions and/or Bonus income:
• Pay stubs with Year-to-Date earnings for all borrowers for the last 30 days.
• W-2 forms from all employment - for all borrowers -for the past 2 years.
• Personal signed tax returns for the last 2 years, including all schedules.
If you are Self-Employed:
• Personal signed tax returns for the last 2 years including all schedules.
• Business signed tax returns for the last 2 years including all schedules.
• Current financial statement signed and dated, including a balance sheet and a profit and loss statement.
• All 1099s, if applicable.
If you own 25% of a business:
• Pay stubs with Year-to-Date earnings for all borrowers for the last 30 days.
• W-2 forms from all employment - for all borrowers -for the past 2 years.
• Personal signed tax returns for the last 2 years including all schedules.
• Corporate or partnership signed returns for the last 2 years include all schedules.
If you own Rental Property:
• Personal signed tax returns for the last 2 years, including all schedules.
• Most current and signed rental agreement(s)
If you receive a Pension:
• Most recent Pension Award letter
• Copy of pension checks, if check is direct deposited, provide the most recent 3 months bank statements showing deposits
• Personal signed tax returns for the last 2 years, including all schedules
• 1099Rs for the past 2 years
If you receive Social Security:
• Copy of most current Social Security Award letter & copy of social security check, if direct deposited, please provide the most recent 3 months of bank statements showing deposit.
• Personal signed tax returns for the last 2 years including all schedules
• 1099s for the past 2 years
If you receive child support, alimony, or separate maintenance, and wish to use the income for qualifying purposes:
• Complete copy of executed divorce decree and separation agreement
• Personal signed tax returns for the last 2 years including all schedules
Asset Verification:
• Most recent 2 months' bank statements (complete with all pages) on all asset accounts including retirement accounts. Be sure that the statements have your name, address, and account numbers on them.
Transaction Type:
If this is a Refinance:
• Most recent mortgage billing statement
• Current Homeowner’s Insurance Declaration Page
• Most recently paid Real Estate Tax Bill
• Copy of your Deed
• Copy of your Mortgage Survey Plot Plan
If this is a Purchase:
• A fully executed Purchase and Sale agreement on the home being purchased, as well as on the home being sold (if applicable)
• Copy of the front and back of deposit checks
• Seller’s Agent Name, Email, and Phone Number
• Buyer’s Agent Name, Email, and Phone Number
• Attorney’s Name, Email, and Phone Number
If part of your down payment is a gift:
• A signed gift letter (we will provide you with the form to be completed)
• Copy of cleared gift check
• Copy of bank statement or transaction history to verify check was deposited into your account
If the property is a condominium:
• Condo Declarations, Master Deed, and Bylaws
• Current Homeowner’s Association Budget
• Management Company Agreement (if applicable)
• Copy of Declaration page from the Master Insurance Policy that reflects hazard, liability, fidelity bond, and flood insurance if applicable
• Condo Questionnaire (to be completed by the management company or unit owner other than the seller)
If the property is held in a Trust:
• Copy of the Trust and the Schedule of Beneficiaries
If you’re currently renting:
• 12 months of your rent receipts or canceled checks or a landlord letter
Identity Verification:
• Copy of your current Driver’s License and Social Security Card
• Permanent Resident Card, if applicable
• Copy of H1-B visa approval, if applicable
Take Away
Start gathering all your documentation if you are looking to buy a home. Let us know if you need a referral to a Mortgage Professional
