With the housing crisis that we experienced 6 years ago, lending is most likely a bit different than it may have been the last time you applied for a mortgage. This is said not to scare you, as lenders are still lending, homes are still selling and there is still a wide range of programs for customers to choose from (yes, there are still even programs with little to no money down). It is said to set realistic expectations regarding the documentation that will be needed throughout the loan process and to make sure your home buying and loan experience is as seamless as possible!
- W2 forms for the last two years
- Most recent pay stubs Explanations a 30 day period
- Federal tax returns (1040s) for the last two years, IF:
- you are self-employed
- earn regular income from capital gains
- earn sizable interest income, etc
- earn more than 25% of your income from commissions or bonuses
- own rental property
- or are in a career where you are likely to take non-reimbursed business expenses.
- Corporate or Partnership tax returns (if you own more than 25% of the business)
- Pension Award letter (for retired individuals)
- Social Security Award letters (for those on Social Security)
- Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don’t think they are important.
- Statements for two months on all stocks, mutual funds, bonds, etc
- Copy of latest 401K statement (or other retirement assets because they can count as reserves)
- Explanations for any large deposits and source of those funds
- Gift letter (if some of the funds come as a gift from a family member – the lender will supply a blank form). Additional documentation will also be needed to show transfer of gift funds.
- Landlord’s name, address, and phone number (if you rent – for verification of rental)
- Explanations for any of the following items which may appear on your credit report: Late payments, Credit inquiries, Collections accounts
- Copy of bankruptcy papers if you have filed bankruptcy within the last seven years
- Copy of purchase agreement (if you have already made an offer)
- Copy of divorce decree and separation agreement
- Copy of Social Security Card (or other documentation of social security number)
- Copy of Driver’s License
- Copy of DD214
We hope that this information is helpful in your home buying experience. Your REALTOR can help get you in touch with a local lender or you can get help from your personal bank. Please note that each person’s situation is unique and there may be additional items needed based on your individual loan scenario. Click here for definitions of mortgage terms.