After you get pre-qualified and find the perfect home, it’s time to apply for the mortgage. The lender will request a nice stack of documents from you to prove that you can afford the home you want to purchase. To make the mortgage approval go as smooth as possible, it’s good to be prepared. Here is a checklist of documents and information that you may be asked for by your lender.
Income
□ Name and addresses of your employers for the last 2 consecutive years. Make sure you have the appropriate contact information for employment verification. If you work for a corporation with multiple offices, it may be different than your office.
□ W-2s for the last two years. It may even be a good idea to have your tax returns on hand.
□ Pay stubs for the last 30 days. If you’re self-employed, provide a year-to-date Profit & Loss statement and your tax returns from the last 2 years.
If you would like any other non-required income considered, provide appropriate documentation, including:
□ Social Security of Disability – a copy of your award letter and either a pay stub or bank statement showing money received in the past 30 days.
□ Pension Income – a pay stub or bank statement showing money received in the past 30 days.
□ Dividends – statements from the past 2 years or past 2 years of tax returns.
□ Child Support – bank statements from the past year or a court printout that clearly labels it as child support.
□ Alimony – the legal documents for your divorce or separation showing the alimony decree and either a court printout or tax returns for the past year that show the alimony was received.
□ Bonuses – bank statements or pay stubs that show the bonuses you receive at work and proof they are continuing.
□ Rental Income – tax returns from the last 2 years showing the rental income and copies of the leases.
Assets
□ Gift Letter – Proof that you will be receiving a monetary gift from a relative or friend to help pay for the home.
□ Bank Statements/Passbooks for the last 90 days for: Checking Accounts, Saving Accounts, Mutual Fund Accounts, IRA/401k, Stocks, Bonds, and Life Insurance.
□ The title to any car you own if less than 5 years old.
Debts
□ Statements (including creditor name, address, and phone) for: Car Loans, Student Loans, Credit Cards, and other debts.
□ Documentation for current mortgage or home loan and proof of payments for past 12 months (bank statements, cancelled checks, or recent mortgage statement).
□ Contact info for current landlord, your lease, and proof of rent payments made in past 12 months (bank statements or cancelled checks).
□ Documentation for any alimony or child support being paid.
□ Documentation for any bankruptcy proceedings, judgments, and delinquent payments with a letter of explanation.
Property Verification
□ A copy of the Purchase Agreement signed by both parties.
□ Legal description of property being purchased (can be obtained by Wilmington Realtor).
□ The MLS sheet or printout (Can be obtained by Wilmington Realtor).
□ A copy of the Purchase Agreement for your current home if you are selling it. A closing HUD will need to be provided before you close on the new property.
Other
□ A list of addresses for your residences in the past 2 years.
□ A copy of your diploma or transcripts, if you were a full-time student in the past 2 years.
□ Your social security number.
□ A copy of the relocation agreement made with your company if you are being transferred.
□ Your INS residency documentation or “Green Card”, if you are a resident alien.
□ A check to pay for your application (cost of appraisal and credit report).
□ Names, addresses, and phone numbers for all parties involved with the transaction, including the Realtor, real estate attorney, closing coordinator, etc.
Extra documentation may be requested depending on the program you are applying for, but this list represents the meat and potatoes.
If you would like the name of a reliable lender or mortgage broker, give us a call at 910.202.2546 or send us a message through our Contact page. We have worked with numerous people in the mortgage industry and know how important it is to the approval process to have a good lender. So, we’re more than happy to share our favorites. Just let us know how we can help you!
