What Loan Documentation Will I Need to Provide?

Loan documentation will be collected during your preapproval process. Depending on the time frame from when you are preapproved to when you are under contract, your loan processor may ask you to provide updated documents. You will not need to provide every document listed below. Your loan officer will guide you in what documents you will need to provide based on your specific situation. 

Income Documents

The purpose of collecting the necessary income documents is to calculate your gross monthly income. All borrowers on the loan will be asked to provide relevant income documents. 

Salary: If you are a salaried employee, you will need to provide us with your two most recent paystubs and all W-2 forms from the last two years.

Hourly: If you are an hourly employee, you will need to provide us with your two most recent paystubs. Since this can be considered variable income, you may have to provide historical paystubs if you have fluctuating hours. If historical paystubs are needed, we will get an average number of hours to calculate your gross monthly pay. You will also need to provide all W-2 forms for the last two years. 

Bonuses & Commissions: If you need to use income from bonuses or commissions, you will need to provide your two most recent paystubs and your last two year-end paystubs. If you do not have access to historical paystubs, a standard written verification of employment may be performed. You will also need to provide all W-2 forms for the last two years. 

Self-employed: If you are self-employed, you will need to provide your last two years' tax returns, personal and business, if applicable. 

Retired: If you are retired, we will ask you to provide your social security awards letter and/or pension statement for the most recent year. 

Asset Documents

The main purpose of providing asset statements is to document your down payment, closing costs, and any required reserves. The underwriter will verify these funds for final approval.  

Depository Accounts: If your funds are coming from a checking or savings account, you will need to provide the two most recent statements for the account(s). 

Investment Account: If your funds are coming from an investment account, we will need your two most recent statements for the account(s), as well as proof of liquidation for the funds needed for closing. 

401K: If you need to access funds through a hardship withdrawal, you will need to provide your most recent 401K statement showing the withdrawal of funds, as well as a statement showing the deposit of those funds into a checking or savings account. 

401K Loan: If you are using funds from a 401K loan, you must provide your most recent statement and document the terms of the loan. In addition, we will need to show the proceeds of the loan being deposited into a checking or savings account. 

Gift Funds: Gifts are eligible sources of down payment for most loans. We will document those funds with a signed gift letter (which we will provide.) The transfer of funds must be documented through updated borrower bank statements, or the donor may provide the funds by wiring them directly to your closing. 

Credit Documents

When you submit your loan application, we will obtain a credit report. In some circumstances, you may have to provide additional documentation or explanations.

Credit Inquiries: If you have any credit inquiries in the last 120 days, we will need a signed credit inquiry letter. This letter provides an explanation for the inquiry and states if any new debt was incurred as a result of the inquiry. If new debt was obtained, you will need to provide documentation if that account is not yet reporting. 

Recently Paid-off Debt Not Reporting: If you have recently paid off a debt and it's not yet reporting, you will be asked to provide documentation of the payoff. 

Other Real Estate Owned 

If you own other real estate, you will have to provide some additional documents for those properties. 

Mortgage Statements: We will need you to provide your most recent mortgage statement for each piece of real estate you own. 

Rental Income: If you need to use rental income to qualify, you will need to provide tax returns for the two most recent years. If the property was purchased or converted to a rental after the most recent tax filing, a copy of the lease may be substituted for tax returns. 

How I Can Help You

When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.