What's needed for a mortgage to be approved is important and should be easily accessible to each family if you maintain the proper records. Keep these items in mind as you move through the decision process to purchase a new home. These items can be broken down between non-financial items and financial items.
Items needed:
Non-financial include:
Social Security Number, Residence address for the last 2 years, Photo identification of borrowers, copy of any offer and acceptance contract signed by all parties:
Financial items to include:
Copy of your most recent pay-stubs covering 30 days with year-to-date total and W'2s from prior years may be requested.
Copy of your last 2 years personal tax returns (if self employed), signed and dated, including all schedules and K1's
List of all existing non-mortgage related debt
Copy of your last 2 months bank statements for all accounts, including investment accounts along with address and account numbers. These are used for verification purposes.
Other:
An application will also need to be completed with each loan and may or may not include all of the information listed above. There may be other items requested which will be specific to your lender and there are other factors which go into an approval process such as your credit history, other debts, down payment amount and the value of the property versus how much you want to borrow.
Developing a good relationship with your banker and mortgage lender before you need funding for a mortgage is also important. Also, there are many types of mortgage financing options so be sure and go over those with your mortgage banker. With rates at all time lows this is a great time to know your items needed for a mortgage.
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