The guidelines to obtaining a mortgage are changing every day, the following is a list of the most common requested documents.
1. Federal Tax Returns for the last 2 years – If you have filed for an extension for the previous year, have your W-2 & income statements on-hand.
2. Your Pay Stubs – Have a minimum of a month’s worth of pay stubs. Financial institutions prefer to see pay stubs that include your name, social security number, employer’s address & year-to-date earnings.
3. Credit Report – Even if you are applying for an FHA loan (that does not use a FICO score to approve a loan), all financial institutions are interested in your debt to income ratios & information on how you have handled debt in the past. Although the financial institution pull the credit report directly from Transunion or Equifax, it is important for you to know what is on your credit & make sure it is accurate.
4. Bank Statements – Mostly likely 2 to 3 months of your last bank statements.
5. Employment History – A record of steady employment in the same field is very favorable.
6. Assets List – Mutual funds, retirement accounts, real estate, stock & any other assets are helpful in determining your worthiness & getting you a low interest rate.
7. Cancelled Rent Checks or Landlord Info – If you currenly rent, being able to prove that you pay your rent is important.
8. Real Estate Contract – The lender needs to understand the terms & conditions of the property you are purchasing, as well as a description of the property. As a realtor, I will normally forward a copy of the completely executed contract over to the lender/mortgage broker.
The key to a stress-free mortgage approval is doing the leg work beforehand to ensure that all the necessary paperwork is organized & ready for your lender’s review. Besides saving aggravation, it is also the key to your best interest rate.