What do you need for a mortgage?

What do you need for a mortgage?

The thought of applying for a mortgage can be intimidating. In the past, the process was a complicated one. But mortgage companies have streamlined the process to make the application process easier. You may not need paper copies of everything since some mortgage companies can gather information electronically with your permission.

Personal information to gather would be to verify income, debts, credit score and assets. Of course, include a sales contract on the property to be acquired.

With the aid of technology, you may find yourself gathering less paperwork. Check with your mortgage company for a complete list of needed information for that lender's guidelines.

Recommended list of documents

Social Security number.

Address and previous addresses.

W-2 forms or tax return forms for business.

3 months checking and savings statements.

Names and addresses of prior employers.

Landlord verification of timely payments.

Copy of at least one pay stub.

Installment loan account no's, lender name and amount owed.

Addresses for the past 5 to 7 years.

Copies of account statements for brokerage accounts.

List of assets(ex boat, stocks, bonds not in brokerage account).

Documentation to verify additional income such as child support.

Personal tax forms for the past 2 to 3 years.

A copy of the sales contract.

List of debts and payment history.

Copy of your IRA or retirement accounts.

Additional list for special circumstances

Alimony and child support documentation may require different forms of information. Ask your lender what is needed in this circumstance. Some lenders may require all court records and cancelled checks. Ask before tackling cumbersome piles of paperwork.

Bankruptcy may require court documents as well as the reason that you filed. Although lenders have the choice of risk verses reward in your approval, a good credit history can add a lot of weight to this decision.

Commission sales and self employment may require additional paperwork. Schedules of pay related documentation can break down earned income. If you own your company, you may be asked for business tax returns as well as a profit and loss statement. Ask your lender what information is needed for this circumstance.

With the mortgage industry redefined, perhaps you will find the application process easier than before. Don't forget to shop around for the rates and factor in the application process before making your final choice.

.