Required Documents
Preparing for a loan.
Gathering Required Documents
Depending on your unique 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.
List of Required Docs
DOCUMENT
EXPLANATION
Two Years Tax Returns
Mortgage lenders want to get the full story of your financial situation. You’ll probably need to sign a Form 4506-T, which allows the lender to request a copy of your tax returns from the IRS.
Lenders generally want to see one to two years’ worth of tax returns. This is to make sure your annual income is consistent with your reported earnings through pay stubs and there aren’t huge fluctuations from year to year..
Lenders generally want to see one to two years’ worth of tax returns. This is to make sure your annual income is consistent with your reported earnings through pay stubs and there aren’t huge fluctuations from year to year..
Pay Stubs, W2s, or Other Proof of Income
- Most recent two full months worth of pay stubs
- Most recent two years of W2s
- If self-employed, provide the most recent two years of 1099s
- Direct deposit on bank satements may support, but replace proof of income
Bank Statements and Other Assets
Lenders may want to look at your recent bank statements and other asset accounts (IRA, 401K, etc.) to assess your risk profile. Other forms of assets statements include investment assets and life insurance.
Lenders typically request these documents to make sure you have several months’ worth of reserve mortgage payments in your account in case of an emergency. They also check to see that your down payment has been in your account for at least a few months and did not just show up overnight.
Lenders typically request these documents to make sure you have several months’ worth of reserve mortgage payments in your account in case of an emergency. They also check to see that your down payment has been in your account for at least a few months and did not just show up overnight.
Credit History
In order to assess you as a borrower, lenders often pull your credit report — with your verbal or written permission. This also gives the lender a picture of your monthly liabilities (debts).
You may need to explain any blemishes on your credit report. Blemishes might include a previous short sale or a foreclosure.
Additionally, you should be prepared to write a statement that explains negative items on your credit report. Lenders would like to evaluate if the negative item was a one-time unavoidable circumstance or habitual delinquency.
You may need to explain any blemishes on your credit report. Blemishes might include a previous short sale or a foreclosure.
Additionally, you should be prepared to write a statement that explains negative items on your credit report. Lenders would like to evaluate if the negative item was a one-time unavoidable circumstance or habitual delinquency.
Gift Letters
Your friends and family might help you buy a house by giving you money. If that’s the case, you’ll need to provide a written confirmation the money is indeed a gift and not a loan. The documentation should list their relationship to you as well as the amount of the gift.
Photo ID
You’ll likely need to provide a photo ID, such as a driver’s license. This is simply to prove you are who you’re claiming to be.
Rent History
For buyers who don’t already own a home, many lenders will request proof that you can pay on time. They may ask for a year’s worth of canceled rent checks (check that your landlord has cashed). Or, they might ask your landlord to provide documentation showing that you paid your rent on time. Your renting history is especially important if you don’t have an extensive credit history.
FOR REFINANCE
If you already own property, we will also need:
Mortgage Account Info
A most recent mortgage statement will help us identify your mortgage servicer, loan balance, and other information need for pay-off.
Home Insurance Policy
A current home insurance policy will be required to provide to the underwriter, as well as aid us in estimating your monthly insurance costs.
Home Equity Account (if applicable)
If you have a current HELOC, or home equity line of credit, we will need your current statement, even if the balance owning is zero. Upon refinancing, you may need to reapply should you wish to maintain a line of credit.