What kind of documents will I need?

When applying for a mortgage in the United States, you’ll typically need to provide a set of standard documents to verify your financial and personal information. These documents help lenders assess your creditworthiness and determine your eligibility for a home loan. While specific requirements can vary from lender to lender and depending on the type of mortgage you’re applying for, here’s a general list of documents commonly required:

1. Proof of Income:

  • W-2 Forms: These documents show your annual earnings and are provided by your employer.
  • Pay Stubs: Typically, you’ll need to provide pay stubs covering the most recent 30 days of income.
  • Tax Returns: You’ll generally need to provide complete federal tax returns for the past two years, including all schedules and attachments.
  • 1099 Forms: If you’re self-employed or receive income from freelance work, you may need to provide 1099 forms and other income documentation.
  • Additional Income Documents: If applicable, include documentation for rental income, alimony, child support, or any other sources of income.

2. Asset Verification:

  • Bank Statements: Typically, you’ll need to provide bank statements for the past two to three months, including statements for checking, savings, and investment accounts.
  • Gift Letters: If you’re receiving financial gifts from family members to help with the down payment or closing costs, you may need letters confirming the gift and evidence of the transfer of funds.

3. Employment Verification:

  • Verification of Employment (VOE): Lenders often contact your employer to verify your current job, income, and job stability.

4. Identification and Personal Documents:

  • Photo ID: Such as a driver’s license, passport, or state-issued ID.
  • Social Security Number: You’ll need to provide your SSN for a credit check and other identity verification.
  • Proof of Citizenship or Residency: This may be required for non-U.S. citizens.

5. Credit Information:

  • Credit Report: The lender will obtain this directly, but it’s essential to review your credit report for accuracy before applying.
  • Explanation of Credit Issues: If you have any negative items on your credit report, you may need to provide explanations or documentation to address them.

6. Other Financial Documents:

  • Divorce Decrees or Child Support Orders: If you’re paying or receiving alimony or child support, you may need to provide related documents.
  • Bankruptcy or Foreclosure Documents: If you’ve experienced either of these financial events in the past, be prepared to provide relevant documentation and explanations.

7. Property-Related Documents (if applicable):

  • Purchase Agreement: A copy of the signed purchase agreement for the property you’re buying.
  • Home Appraisal: Typically arranged by the lender, but you may need to provide access to the property for the appraisal.
  • Homeowners Insurance: Proof of insurance coverage for the property.

Please keep in mind that the specific documents required may vary depending on your financial situation, the lender’s policies, and the type of mortgage you’re applying for (e.g., FHA, VA, conventional, jumbo). It’s crucial to work closely with your chosen lender and loan officer to understand their specific documentation requirements and to ensure a smooth mortgage application process. Be prepared to provide these documents promptly to expedite the mortgage approval process.