When you’re ready to apply for a mortgage loan, it’s always a good idea to find all the necessary documentation you’ll need before you even begin. Whether you’re applying for your mortgage loan online, over the phone, or in person, being prepared with the right paperwork can help to speed up the process. Although some lenders may have different requirements than others when it comes to the application process, it’s better to be over-prepared, rather than not bring everything you need. When in doubt, you can always ask beforehand what you should bring with you, but you’ll likely need to have:
Recent credit card statements
It’s not necessary to bring in a copy of your credit report, as any lender you apply with will do this automatically. Although running a credit check will show lenders what your scores are, how many accounts you have, your credit utilization rate, and if you have any accounts in bad standing, your credit report may omit some details that some lenders want to see. For instance, they may want to see how you handle your credit cards, including how many charges you make, when you make your payments, and how much you pay towards them. In case your lender does require this information, have copies of your credit card statements on hand. Bring them with you if you’re applying in person; otherwise, you may need to scan or fax them over along with your application.
Proof of income
Almost just as important as credit is your income. Not only do lenders want to know that you make enough money to carry a mortgage loan, but they also want to know that you have a secure job. You’ll likely need to provide your two most recent pay stubs, which will show your current salary, but you’ll also need to provide tax returns and W-2 income statements from the last two years to prove employment stability. If you haven’t been at the same company for at least two years, you may have some difficulties when it comes to qualifying for a mortgage loan. At the very least, you may want to wait until you’ve been working the same company for at least six months before you apply for a mortgage loan.
Child support and alimony documents
If you pay alimony and/or child support, you may need to have this information on hand. Lenders want to know about all of your significant financial obligations, and beyond what may show up on a credit report.
Recent bank account statements
If you barely have the funds available for your down payment and closing costs, this may be a cause of concern for most lenders. They may be more hesitant to offer you a home loan if you will be completely depleting your bank account and stretching every last dollar in order to make it work. You’ll need to make sure you have enough in your bank to comfortably cover closing costs and the down payment, while having plenty left over for your other expenses. As you shop around and compare lenders, ask about what their requirements are before applying, so that you’ll know if you need to save up more first.
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Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.