Finance

A Guide That Explains What Documents Are Needed For A Mortgage

Your mortgage lender will want to take a deep dive into your financial life if you are someone who wants to obtain a home loan anytime soon. What could be the reason behind this? Well, this is done to make sure that all of the underwriting rules and regulations are met. In addition to this, the home affordability of a homeowner would be determined also. Apart from this, throughout the approval procedure, a lender will ask you to provide all the imperative documents. Until and unless the complete documents are not provided, no homeowner will be moving forward with the procedure. In addition to this, his/her loan application will also be rejected. Therefore, make sure to submit all the documents on time.

Are you wondering what documents are needed for a mortgage? Keep reading this piece of article and find out everything you should know.

Imperative documents for a mortgage

  • Personal identification card: No matter which loan you want to apply for, a lender will always ask you to verify your identity. In order to do so, you should always have a driver’s license, passport, social security card, pan card, state-issued card, or a federal issued card. Submitting any of these documents will let the lender understand that the person who will be getting the loan is eligible and there is no identity theft.
  • Proof of income: When it comes to submitting proof of income, everything depends on what type of work you are doing, and how much money you will get in return. If you are someone who wants a pre-approval, consider the below mentioned:
  1. All the pay stubs from the last two months.
  2. Past two years W-2 forms
  3. Recent bank statements of two months
  4. Past two years tax statement

Any self-employed individual and freelancer do not obtain W-2 stubs or pay forms. Therefore, their documents differ.

  1. Business tax returns
  2. Personal tax returns
  3. Business or state license
  4. Asset account statements
  5. Income details

Owners of rental properties have to submit all the documents to the commercial mortgage lenders.

  • Tax documents: A pre-approval for mortgage asks for tax documents. This is one imperative document that allows the lender to verify the income of a home buyer. Anyone with decent income basically has W-2s or I-9s to submit to the lender. Meanwhile, a self-employed person has to submit form 1099 to the lender.

While it is recommended to hold numerous copies for tax returns, there are people who do not have them handy. If you are someone who needs a pre-approval, get yourself some extra tax returns copies ready. This way you will experience a hassle-free procedure and save yourself from running errands.

The Bottom Line

These are the documents that a homeowner should submit to a lender. Now that you are aware of them, make sure you submit all the documents. Apart from the ones mentioned above, carry your credit report, and bank statements also. Also, make sure to confirm the documents from the lender because all of them differ from one lender to another.

Credit link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button