Documents Required for a Home Loan Mortgage
Below is a list of documents that are required when you apply for a mortgage. Having the necessary financial documentation ready when you talk to our loan expert will speed up the mortgage process.
However, every situation is unique and you may be required to provide additional documentation. And our loan experts are ready to help you to determine what documentation you'll need for your particular situation.
1. Credit History
When you apply for a mortgage, we must access your credit report to know how credit worthy (or risky) you are as a borrower. Borrowers with high credit score are more likely to qualify for a larger loan, better loan options, and/or a more favorable interest rate . We'll need your Social Security number and date of birth.
2. Your Property
- Copy of signed sales contract including all parties when available
- Copy of Listing Sheet and legal description if available. You may also need to provide condominium declaration, by-laws and most recent budget, if the property is a condominium.
3. Proof of Income
To make sure that you are able to make your mortgage payments, we need to see proof that you have a source of income. Following documents are usually required:
- Copies of your pay-stubs for the most recent 30-day period and year-to-date
- Copies of your W-2 forms for the past two years - Your W-2 forms will help your lender verify that you are employed and will show your income history.
- Names and addresses of all employers for the last two years
- Letter explaining any gaps in employment in the past 2 years
- If self-employed or receive commission or bonus, interest/dividends, or rental income:
- Provide complete tax returns for the last two years PLUS year-to-date Profit and Loss statement, If you have filed an extension, please supply a copy of the extension.
- K-1's for all partnerships and S-Corporations for the last two years
- Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years. (Required only if your ownership position is 25% or greater.)
4. If you will use Alimony or Child Support to qualify
- Provide divorce decree/court order stating amount, as well as, proof of receipt of funds.
5. Source of Funds and Down Payment
To qualify for a mortgage, you need to be able to show that you have some money for the closing costs. Acceptable sources of funds may come from:
- Sale of your existing home - provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold
- Savings, checking or money market funds - provide copies of bank statements for the last 2 months
- Stocks and bonds - provide copies of your statement from your broker or copies of certificates if used as income or assets
- Gifts - provide Gift Letter, evidence giftor had funds to give and proof of receipt of funds
Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation.
6. Copy of Your Earnest Money Deposit
The earnest money deposit is a deposit made by a buyer towards the down payment in evidence of good faith when the purchase agreement is signed. You may be asked to provide a copy of the earnest money deposit.
7. Copy of Homeowners Insurance
Homeowner's insurance is used to verify that you'll have sufficient coverage on the property when getting a mortgage. It covers any damages that may affect the home's value.
9. Debt or Obligations
- Disclose any debts not included on the credit report
- Details of mortgage holders and/or landlords for the last two years if required
- If you are obligated to pay alimony or child support, include marital settlement/court order stating the terms of the obligation
Once you've begun the loan process, our loan expert will let you know exactly what documentation you'll need to get approved.
If you would like to learn more about the process of getting a home loan, please reach out to our Loan Consultant and President Kara Lowrie at 318-549-2800.
