Different lenders & mortgage broker will require different documents regarding your home loan, both parties may require same documents or may not. It is quite natural today that lenders will approve your loan only after verifying your financial status & some other major aspects. For this reason, you'll have to provide them some important documents which will portray your financial obligations & many more things. There is no need to worry about, the specific list will be provided to you by the lender or your mortgage broker.
Let's check the list of must-have documents which the lender will ask for :
Verification of the property
* You will need to provide the purchase agreement to the lender. In case of loans for construction purpose, you might be asked for the plan & specification copies.
* You'll need to provide Legal description of the property. Your real estate agent can provide you this details.
* You can check the listing of the property & arrange a copy of that property information sheet. This document can be easily arranged if you ask the help of your real estate agent.
* If you are the seller of that property, the additional documents you need to provide is the contract of sale & a copy of the HUD-1 closing statement. These documents need to be submitted before closing.
*You'll need to provide details of the real estate owned. That will include – Lender's identity proof, bank account details, type of property, purchase price (original), principal of the loan amount, monthly mortgage payment amount, rental agreement copies, & tax returns of past two accounting years (signed).
Your income proof
Pay stubs - Each of the applicants must produce copies of recent pay stubs.
The past two year's W-2 statements – You will be getting this statement from your employer each year during tax season. So, check your files, it should be attached with your tax returns. In case you are filing your tax returns online, then ask your tax consultant for the e-copies & records.
Tax returns – You'll need last two years tax returns, make sure you have all pages. Along with the tax returns you must provide IRS Form 4506T. The lender will review these documents before proceeding further.
For self-employed individual :
- Submit your business details along with profit & loss account and balance sheet. Make sure both documents must be signed by you & your accountant.
- Properly signed tax returns along with all schedules (last two years) for both personal & business entities.
Additional Income Documents
These are some other important income oriented documents which might be needed by the lenders. These are - Social Security payments, income from pension, Income from dividends/ bonuses, Disability payments, Alimony, Child support and income from rented properties (if any).
Your Assets & any kind of debts
For reviewing your financial status these documents will be required :
*Statement from the bank where you have your account. The minimum period will be last three months.
* Your investments & securities like – bonds, stocks, life insurance etc.
*If you are getting any kind of funds regarding the payment of your home loan, then the gift letter will also required as a proof.
The lenders need to verify your accumulated debts also, these may include:
*Student loans
*Credit card debts
*Utility bills
*Auto loan or car loan
*Mortgages ( if any) or home equity line of credit etc.
Some other essential documents
Last but not the least, below given docs are required by lenders :
- Your social security number
- Your addresses for the last two years
- Divorce settlement papers if you have separated from your spouse.
- Proof of your education if you were a student in past two years.
- Cancelled utility bill checks & rent payment checks (If any).