Mortgage Loan Documents
Everyone knows that the mortgage application process is
long and complicated and above all, it requires a lot
of different documents and paperwork.
When
taking
out a mortgage, there are a lot of different documents
you should prepare and have ready that are going to be
required during the process.
These documents deal with your personal information as
well as your financial information.
Most lenders require a plethora of different documents
in order for your application to be considered.
The article, “Loan
Application Checklist,” featured on the website
mortgage-x.com, lists the different documents you are
going to need for the mortgage application process.
The author notes that some of the documents your are going
to need in order to prepare for
your
mortgage application is, verification of income, verification
of your assets, information about the purchase and information
about your debts.
This may not seem like that much, but each of these categories
could require multiple documents.
Starting with the verification of income documents, example
of these are: “Earnings statements: W-2 forms, recent
pay stubs and tax returns for the past two years; If you
are self-employed: profit and loss statements and tax
returns for current year and previous two years; Additional
income: social security, overtime bonus, commission, interest
income, veteran's benefits and so on.”
So as you can see from this example, depending on the
type of work you do, there are different documents.
To verify your assets, you will need documents such as
these, “List of bank account numbers, the address
of your bank branch, checking and savings account statements
for the previous 2-3 months; List of savings bonds, stocks
or investments and their approximate market values; Copies
of titles to any motor vehicles that are paid in full.”
The reason why lenders want you to verify your assets
is so they know you are not exaggerating or lying about
the money or other investments you may have.
The documents that show information about the
home
purchase include a copy of the purchase contract and
a copy of the deposit check for the home.
“Lenders may also ask you about the origin of your
down payment. If money for down payment is a gift from
a relative, bring to the interview a copy of gift letter
and copy of gift check. The gift letter states that the
money will not have to be repaid.”
The information regarding your debts is also extremely
important to
obtaining
your mortgage. These documents include:
“Credit card bills for the past few billing periods;
Other consumer debt such as car loans, furniture loans,
student loans and other personal and cosigned installment
loans with creditor addresses and phone numbers; Evidence
of mortgage and/or rental payments; Copies of alimony
or child support.”
All of these documents are extremely important to the
application process. You should get these in order before
you even start looking for a home to avoid any pitfalls
later on.