8 Documents Needed to Apply For a Mortgage
Bydand Home Loans LLC
Bydand Home Loans LLC
Published on January 1, 2023

8 Documents Needed to Apply For a Mortgage

Applying for a mortgage loan can be an intimidating process, and it's easy to feel overwhelmed. But understanding what documents you need is the first step in taking control of the process and getting into your dream home. Here are the eight essential documents you'll need when applying for a mortgage loan.

Asset Statement

Your asset statement provides an overview of your financial worth. It takes into account all of your assets, such as stocks, bonds, retirement accounts, liquid cash in checking and savings accounts, real estate holdings, insurance policies and more. This document gives lenders a good idea of how much money is available to you. 

Bank Statement

Lenders look at your bank statements to get an idea of how much money is coming in and out of your accounts on a regular basis. Lenders will be able to see any fees or unexplained transactions that may have occurred over the past few months.

Identity Information

In order to secure a loan, lenders need proof that you are who you say you are. This means providing identity information such as driver's license or passport numbers, Social Security number and birthdate. Depending on the lender, you may also be required to provide additional documentation proving that your identity information is correct.

Pay Stubs

Pay stubs show lenders how much money comes in from each job or contract that you work for each month or pay period. They also list deductions from each paycheck such as taxes, 401(k) contributions or health insurance payments. Pay stubs help lenders determine if borrowers have enough income to make their mortgage payments on time each month without stretching their finances too thin.

Proof Of Military Service

If you are currently serving in the military or are retired from military service, lenders will require proof of this information before approving your loan application. Typically they will ask for your discharge papers or DD Form 214. Which lists all relevant military service details including rank achieved and dates served.

Proof Of Rent Or Mortgage Payments

If this isn't your first home purchase then lenders will want to see proof that you have been making mortgage payments on time for at least 12 months prior to applying for the mortgage loan (or paying off previous mortgages). Proof can come in the form of canceled checks or bank statements showing monthly rental/mortgage payments being made over the last year plus copies of leases if applicable.

Tax Returns

Your tax returns provide valuable insight into how much money you bring in yearly. As well as any investments made throughout the year (which can help reduce taxable income). Lenders use tax returns to evaluate borrowers’ ability to pay back loans in addition to their overall financial status including any liabilities they might have incurred during the previous year (i.e., credit card debt).

W-2 Forms

W-2 forms list income earned through wages or salaries each year along with taxes withheld by employ. These forms must be submitted along with other documents when applying for a mortgage. So that lenders can accurately assess borrowers’ current financial standing. Including whether they owe any back taxes or have outstanding debts with the IRS. These must be paid before approval is granted on their loan applications.

Bottom Line:

Applying for a mortgage requires having all eight essential documents ready before starting the process. These include asset statement, bank statement, identity information, pay stubs, proof of military service, proof of rent or mortgage payment history records from previous homes owned , tax returns ,and w-2 forms .If there are any other documents needed beyond these eight pieces ,your lender will let you know . Having these documents ready ensures borrowers can quickly complete their applications without delay . With these documents prepared beforehand ,you’ll be one step closer to owning your dream home!