Once you’ve contacted your lender to apply for a mortgage, they will request certain documentation from you to verify to insure you meet the loan requirements for the program.  The mortgage loan checklist for documentation is fairly consistent no matter where you apply.

Mortgage Loan Documents Checklist:

  • Your W-2s for the past two years.
  • 1099s and tax returns for the past two years, if self employed.
  • Your 2 most recent year-to-date paycheck stubs (within 30 days).
  • Residence history – Past 2 years and landlord information if applicable.
  • The name and address of each employer for the past 2 years.
  • 2 months bank statements for all checking, savings, investment and retirement accounts (all pages included).
  • Any Divorce Decrees and 12 months’ proof of child support, when applicable.
  • Addresses of other real estate owned.
  • Mortgage information on all real estate owned.
  • Current copy of your Drivers License and Social Security Card.
  • Copy of the sales contract for the subject property with all addendums if applicable.

Loan Application DocumentationOnce your application and all home loan documentation requested has been submitted, it’s verified by an underwriter who can then issue an approval if appropriate loan requirements are met.

Your lender will look at some of the following aspects to to determine if you meet loan requirements:

  • Your combined income and your total monthly expenses. Many mortgages have debt-to-income ratio limits of 43%. These DTI ratios may be exceeded sometimes with positive factors.
  • Your credit history is important.  Credit requirements vary between loan types.  FHA loans may only require a 580 FICO credit score, while conventional loans may require a 660 credit score or better.

What steps are involved in the mortgage application process?

Some of the steps that you should expect in the mortgage application process include:

  • Contact a lender, or multiple lenders
  • Compare interest rates and closing costs for each lender
  • Lean about current loan requirements and limits for your area 
  • Submit a loan application
  • Provide your lender with all requested home loan documentation
  • Comply with all lender requests for additional information and explanations
  • Submit payment for appraisal, which your lender will order
  • Close the loan transaction
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