Applying for a Mortgage

Applying for a mortgage can be a tedious process, primarily because of the amount of documents that are required by the mortgage lender. It is helpful to have a checklist of these documents available so that you can ensure you have everything you need to begin the mortgage application process. Having these documents will speed up your mortgage loan process for sure and get you into a position where you can make a legitimate offer on a house much quicker.

Applying For A Mortgage Relies A Lot On Your Income

You’ll need a variety of documents that prove your current income including:

  • Recent paycheck stubs
  • W-2 forms
  • Income tax returns, both state and federal
  • Profit and loss statement for your business (if self-employed)
  • 1099 INT for interest income
  • Copy of divorce decree or court order if the alimony or child support you receive is being included as income
  • Proof of retirement or disability income
  • Copies of lease agreements if you have rental income

In addition to proof of income, you’ll also need to show proof of any assets you’ve asserted to show your net worth. This could include stocks, bonds, certificates of deposit, IRA accounts, etc. Copies of your bank statements as far as three months back could also be required in order to show you maintain a relatively stable balance.

You may need to prove your credit to debt ratio is not too high. In order to do this, a lender might need copies of your current statements from credit cards, car notes, or other debt. If you have recently paid off some of your debt, a paid-in-full letter could be helpful as well.

As the approval process goes on, your lender may ask you for additional documentation if it appears some of the qualification criteria they have set forth is questionable. Be advised that this is normal, and is not necessarily an indicator that your loan application is going to be denied.

Applying for a mortgage is a tedious process, but well worth it in the long run. To check mortgage interest rates and to see if you qualify to buy a house, please fill out the brief form at the top of this page. Thank you.