When you are applying for a mortgage, part of the approval process will require that you present documentation to the bank to support any claims you have made about your income and your readiness to assume the loan. Even if you have been pre-approved by a lender for a loan, you will still need to present this information over the course of the loan approval. It may be requested by the loan officer, or later by the loan processor, before the documentation is packaged along with your application and sent to the underwriter for approval.
If you are in escrow, you will want this process to go as quickly and smoothly as possible so no delays can derail your application. Before you make an offer on a home, it is best to be prepared with as much of this documentation as possible to make sure that your loan will be approved quickly and easily.
Many borrowers dont have a clear picture of types of documents they will need to present to the bank. Different types of loans require different types of documentation, but in general, you should have the following on hand to present to your prospective mortgage loan officer.
Most loan officers ask for income verification in the form of completed tax returns to verify your income over the last two to three years. Three years worth of tax returns, complete with schedules and attachments, may be requested.
Pay stubs for at least one month, as well as all W2 forms for borrowers and co-borrowers.
Three months worth of bank statements for every bank account you have, including IRAs, 401Ks, and business accounts.
If any gift funds are being used in the purchase, the giver will also need to provide documentation, including recent bank statements which prove they have the money to give. The giver must also sign an affidavit stating that the money is a gift, not a loan. You may also need to show a paper trail for the money, including deposit slips.
Addresses and account numbers for any credit, loans, or debts you have.
Addresses of your residency going back seven years.
If you are divorced, copies of divorce decrees may be requested to prove that no other party has a claim on your property.
If youre self-employed, you may be required to provide further documentation, such as business tax returns and letters from clients; which assert they will continue to employ you in the future.
