What to prepare for your mortgage
Personal identification: Gather your government-issued identification, such as a driver's license, passport, or social security card.
Proof of income: Provide documentation to verify your income, including recent pay stubs, W-2 forms, or income tax returns for the past two years if you're self-employed. If applicable, gather documents for other sources of income, such as rental properties or investments.
Employment verification: Obtain a letter from your employer confirming your job position, length of employment, and income details. This is typically required to validate your employment status.
Financial statements: Compile your bank statements from the past two to three months for all accounts, including checking, savings, and investment accounts. This helps demonstrate your financial stability and ability to handle mortgage payments.
Credit history: Obtain a copy of your credit report from one of the major credit bureaus (Equifax, Experian, or TransUnion). Review it for accuracy and address any discrepancies or errors before applying for the mortgage.
Debt information: Make a list of all your outstanding debts, such as credit cards, student loans, car loans, and other mortgages. Include the account balances, monthly payments, and any relevant account numbers.
Asset documentation: Provide documentation for any other assets you own, such as real estate properties, vehicles, or investments. This can help strengthen your financial profile and demonstrate additional sources of collateral.
Down payment funds: Save money for your down payment and ensure it is readily available in your bank account. Be prepared to provide statements to prove the source of your down payment funds, especially if they are from gifts or loans.
Property information: If you've already selected a property, gather relevant details, such as the address, purchase agreement, and listing information. This information will be necessary for the mortgage application and underwriting process.
Additional documents: Depending on your specific circumstances, there may be additional documents required. This can include divorce decrees, child support or alimony agreements, proof of residency, or other legal documents.
It's important to note that requirements may vary depending on the lender and the type of mortgage you're applying for. Contact your chosen lender or mortgage broker to get a complete list of the specific documents they require for your mortgage application. Being prepared with the necessary documents in advance can help expedite the process and increase your chances of a successful mortgage approval.