Applying for a mortgage can be a confusing and frustrating process. You have to provide documentation for everything, and sometimes it gets a little messy. So we wanted to help guide you through the process of gathering up the documents that you will need before meeting your lender by creating this checklist.
Mortgage Application Information
The first stage entails filling out the Uniform Residential Loan Application, which every potential borrower completes to provide key personal and financial details. Lenders use the information from this form to determine if a borrower is eligible for a mortgage.
Income Verification
Borrowers may be asked to provide a few documents to prove they will be able to repay the loan. Lenders want to see that you can make the payments, so they check your income to make sure it is stable and consistent.
When applying for a home loan as a self-employed worker, freelancer, or contractor, you typically need two years of stable work in the same industry. You can show this with contracts or letters from existing clients or by providing your business license or proof of insurance.
Debts and Assets
When looking at your finances, lenders will want proof that you can afford mortgage payments after you’ve paid off the down payment and other closing costs. They’ll look at all of your existing debt – including car and student loans, credit cards, and existing mortgages – along with any assets, such as bank and investment accounts that could help pay for the purchase.
Verifying Credit Scores
It’s common for lenders to check your credit history when you apply for a mortgage, but they don’t ask to see copies of your reports. Instead, they’ll ask you for permission to check your scores. If you have late collections, payments, judgments, or other derogatory marks on your credit reports, the lender may inquire for a letter explaining these items. As part of the credit check, the lender will review your credit score, which will influence the interest rate you receive.
History of Rental Payments
You’ll need to provide proof of your consistent rental payments for the last 12 months and contact information of your landlords over the last two years.
Non-Citizen Identification
To get a mortgage, you may need to provide copies of your green card, proof of employment authorization, or a valid immigrant visa. As with any borrower, the lender wants to make sure you have a job and plan to pay back the loan.