To apply for a mortgage you are going to have to start with a mortgage application and you’ll need an assortment of documents. Each mortgage applicant may need something different, but certain documents are universal. You must prove to the lender that you have the income, assets, and financial responsibility to take out a mortgage.

Documents Everyone Need for a Mortgage Application

It’s a good idea to gather these documents a few months before applying for a mortgage. This gives you a chance to review everything, make sure they are suitable to qualify for a mortgage and fix any issues you see.

Income Documents

To start your Mortgage Application lenders are going to need 30 days of your most recent pay stubs. This proves the income you claimed on your application and that you’re currently employed. For example, if you’re paid biweekly, you’ll provide two pay stubs, and if paid weekly, you’ll provide four pay stubs.

To further prove your income, lenders need the last two years of your W-2s. They use this information to ensure your income is consistent over the years. If your 2-year average income differs from your current income, it may raise more questions.

Asset Documents

All borrowers need money to close. For example, you might need a down payment, plus there are closing costs to cover. Your asset statements prove you have the required down payment and enough money to cover the cash to close.

Most lenders require the last two months of bank statements. Make sure that your bank statements don’t have any large deposits or withdrawals, as that creates a red flag. Lenders look for deposits consistent with your income, and any unusual deposits signify a loan that could affect your approval.

Approval to Pull your Credit

Lenders must also have the approval to pull your credit. This is one of the first things they do to determine if you qualify for a loan. First, they’ll look at your credit history and credit score. 

If there are any hiccups on your credit report, like a foreclosure, bankruptcy, or collections they’ll ask questions about it and ask for further documentation to prove the date they were discharged.

Other Documents you May Need

If you’re self-employed, will receive gift funds, or previously rented, you may need to provide a few more documents, including the following.

Tax Returns

If you’re self-employed or get paid commission, you must provide your tax returns from the last two years. This proves your income and shows your adjusted gross income (income after your deductions). Business owners often take many deductions, which can affect your bottom line and loan approval.

Gift Funds

If you’re receiving funds from a family member to help with the down payment, you’ll need a gift letter from the donor proving they are providing the funds. The letter must include the amount, the reason and a statement that the funds are a gift, not a loan.

Rental History

If this is your first home, lenders may require a rental history from your landlord. This proves you made your housing payments on time and can help you get ap

Final Thoughts

Providing the proper documents when completing a mortgage application can help you get approved faster. The more organized you are and the more straightforward your records are, the easier lenders can underwrite and approve your loan. Here is a look at a sample mortgage application.

Looking to get a mortgage quote? Head over and get a quote or If you have any question about the process contact us today at 480-666-9287.