When you’re applying for a mortgage, getting all the necessary documents together can seem like a hassle. You’ll want to be as prepared as possible to provide all the documents required so that the process will be easier and more efficient, allowing you to close in a timely manner. Luckily for you, our mobile app makes it easy to upload your documents. Plus, with the help of our experienced Loan Originators, you will be able to enjoy a seamless process. To get you started, here is a list of some basic documents you should consider having ready to go prior to applying for a mortgage.
Your lender will need to verify your reliable and sufficient income prior to issuing a mortgage in order to be sure that you will be able to make your mortgage payments. They will not only want to check that you bring in enough money, but they will also want to be sure that it’s a stable and steady source of income. Some documents you may want to have handy are:
• Recent W-2s and paystubs
• Last 2 years of federal tax returns
• 1099 forms and profit and loss statements for anyone who is self-employed
• Legal documentation such as a divorce decree that verifies alimony or child support payments that have been made for at least the last 6 months and will continue for at least the next 3 years
Myth: People will untraditional forms of income can’t get a mortgage.
As long as you have proof of consistent and adequate income, it is still possible to get a mortgage. You may need to supply different types of document depending on your source of income, but it isn’t impossible to secure a loan.
In order for lenders to be sure that you can still make your mortgage payment should your main source of income be lost, they will look at your assets. These financial assets can be things like bank accounts, investment portfolios, or retirement savings. To see how much of your income already goes to other debts, they will look at your liabilities such as car loans in the form of your debt-to-income ratio. Some documents you can provide are:
• Bank, investment, trust, or retirement account statements from at least the last 60 days
• Gift funds proof such as a check and deposit slip and a signed letter from the giver of the gift that verifies no repayment of the funds are required
• Proof of ownership, proof of transfer of ownership like a bill of sale or a deposit slip, or other documents that verify the sale of assets
Credit scores are always a very important piece lenders consider when you apply for a mortgage. Your lender will ask for verbal or written permission to pull your credit report. And if there are any issues, you may be able to provide the following types of documents:
• Documents that verify the existence of an event that may have negatively affected your credit score such as medical bills
• A letter that explains the first document and what brought on the negative effects to your credit
Remember that your lender may require different or additional documents than the ones we are listing. Some other documents that may be required include:
• Proof of rent payments for the previous 12 months such as bank statements or verification from your landlord
• Proof of social security or disability income
• Photo ID
There are lots of factors that go into the approval of a mortgage application. While you can’t guarantee an approval, you can do your best to keep your documents organized and ready to go. When it’s time to get a mortgage, remember that everyone’s needs and history are different. That’s why it helps to have a dedicated Loan Originator to guide you and answer all your questions. Contact us today to speak to an experienced Loan Originator who will be able to help make the process stress-free and not so intimidating.
McGlone Mortgage Group offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.