The mortgage application process is more rigorous today than ever before. If you think that the process will be as simple as it was when you purchased your last home, you may be shocked by the laundry list of documents and information that are required under today’s more stringent lending requirements. The mortgage application checklist below includes some of the more standard documents that are required.
It is best to begin the mortgage application process before you even begin looking at homes to purchase. In today’s market, many Sellers require a Mortgage Pre-Approval be presented before they will even consider a buyer’s offer, and some will not even let Buyers view a home without it.
When applying for a mortgage, you will need to provide the following items.
Basic Documentation Needed
- Pay Stubs (typically one month)
- If self-employed, copies of past two years Federal Income Tax Returns
- Bank Statements (two months)
- Information regarding the source of down payment funds
- If FHA Financing – Copy of Social Security card and photo ID
- If VA Financing – Certificate of Eligibility or DD214
Additional Documentation (required under certain circumstances)
- Gift Letter
- Letters of Explination
- Driver’s License, Social Security Card, Green Card or Visa
- Divorce Decree
- Proof of Recurring Income (i.e., award letters, retirement pay, child support, etc)
- Bankruptcy Papers
In addition to providing these documents to a lender, you will also be required to submit a written loan application, either in person or online. This application will authorize your lender to obtain information on your credit history from credit reporting bureaus. Your financial information combined with your credit history are the two most important factors a lender will consider when approving you for a mortgage.
To find out more information on credit scores, visit our Credit Score Resource Page.
Keep in mind, that lenders will also review an updated copy of your credit report just prior to closing. If anything on your credit report has changed since you submitted your original application, you could be denied at the last minute. A few simple rules can be followed to ensure you don’t end up having any last minute issues.
To find out more check out our guideline of do’s and don’ts after mortgage application.