Documents Required for a Home Loan

Documents Required for a Home Loan


 

Prospective homebuyers, especially first-time homebuyers, may feel overwhelmed by all the documents that need to be gathered for a lender. If you are going to purchase a home with a mortgage or refinance your current mortgage, you will be required to sign disclosures and fill out an application to begin the process. Mortgage Investors Group will work with you to make the process as pain-free as possible.

The applicant is required to produce various documents for us. Information, such as credit history, employment information, and recent bank statements, needs to be collected. With these documents, we will be able to properly assess how much you can afford to borrow.

Home Loan Lender Requirements

Home Loan Lender Requirements

If you are prequalified for a loan, a mortgage underwriter will then review the details of your home loan application for final inspection. The underwriter’s job is to carefully review all your documents against the criteria of the loan. The underwriter needs to make sure that the borrower can comfortably afford to pay back the loan. Different lenders have different guidelines, based on the type of loan being given, for their underwriters to follow.

Although guidelines differ from lender to lender, all lenders are required to review a prospective borrower’s income and financial information. Following is a list of documents lenders typically require when qualifying borrowers for a loan:

Approved for a Loan

Proof of income

  • Copies of pay stubs for all borrowers
  • W-2 statements for the previous two years
  • Tax returns for the previous two years

Proof of assets

  • Gift letters explaining any gift money received from family or non-profit organizations. These letters specify that there is no debt to be repaid.
  • Documents providing information on any stocks, bonds or insurance equity you may have
Documents required for a Loan

Proof of any debts you owe

  • Any current lines of credit
  • Outstanding car loans
  • Current home mortgage or home equity
  • Consumer debts – credit cards, student loans or store credit

Personal history

  • 12 months of cancelled checks for rent or utility bills to prove residence
  • Check or credit, for the electronic appraisal (These can range in cost from $200 to $250.)
  • Social Security Number
  • A diploma and transcript from education institution if you were a student in the past two years
  • Your home addresses for the previous two years
First-Time Homebuyers

Verification of the property

  • A copy of the final purchase agreement contract. You may need plans and specifications if it is a new construction loan.
  • A legal description of the property you are buying. You can get this from your real estate agent.
  • If you are selling a home, you will need to produce a copy of the Closing Disclosure (CD) on the home and the fully executed contract of sale.
Documents required for a Home Loan

Additional documents that may be required, if applicable

  • VA discharge papers (DD214) for military veterans
  • Divorce decree
  • Documents supporting any income received from Social Security or retirement trust
  • Copy of petition for bankruptcy and discharge, and supporting schedules
  • Copy of 1099 tax form
  • If self-employed, documentation proving 2+ years of tax returns proving 25 percent ownership or more of company
  • Divorce papers, child support documentation

For additional information on documents required for a loan, contact one of Mortgage Investors Group’s expert staff members.

Additional Documents that may be required if applicable

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