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When you apply for a mortgage, whether this to pre-qualify you or you are actually in contract, it is helpful to anticipate the various documents that will be required by your loan officer. With the increasingly tight underwriting guidelines imposed upon borrowers, preparedness for documents involved in a mortgage application will reduce stress and help speed up the loan process.


Income documents
(Lenders need to see steady income coming in within the last 2 years.)

  1. W2 forms for the last 2-3 years (business tax returns, if self-employed)
  2. Paystubs for the last 2 months
  3. Personal tax returns for the last 2-3 years
  4. Documentation to verify additional income, such as child support or pension

Asset documents (Lenders are going to want to see that you have enough money in the bank to cover your down payment + closing costs + required reserves.)

  1. Bank statements on all checking/savings accounts for the last 2-3 months
  2. Most recent 401(K) statement or other retirement account statement
  3. Most recent statement of stocks or bonds owned
  4. Other liquid asset statements

Letters of explanation (as needed)

  1. If there is a gap in your job history, the lender needs to know why there is a gap, and whether you used this for further job training, or if there was a family emergency, or if this gap was temporary

  2. If you have a joint bank account with your spouse, and you are the only one applying for the loan, a letter may be required from your spouse that gives you full control of your bank accounts.

  3. If there is a late credit card payment reported in your credit history, the lender needs to know the circumstance behind this delinquency and that it is not a repeatable event.

  4. If there are several credit inquiries on your credit report, the lender needs to know the reason behind the inquiries, and that there are no new accounts opened. If you have indeed opened a new (credit) account, this needs to be explained as such.

Save these documents. Save your sanity.

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A short sale is a long process. Does that sound contradictory? Not really. “Short” refers to a sale where the amount owed is less than the value of the home – hence, the sale proceeds are “short” to cover the mortgage. “Long” refers to the length of time involved in getting the short sale approved by the lender...

   
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