List Of Documents Required When Applying For A Mortgage

The biggest delay today in processing a mortgage is collecting all of the documentation required before the loan can be approved.  So once a Borrower starts the Homebuying Process they should begin to put together all the documents that will be required when they go to apply for a Mortgage.  When I Pre-Approve my Borrowers, and they plan on purchasing a home soon, I go over a List Of Documents Required When Applying For A Mortgage.  I feel it would also be a good practice for Realtors/Agents to make their Buyer aware of the basic documents required when they meet with the Buyer as well.  Starting the process as soon as possible of putting together all the documents required, before the Buyer/Borrower meets with a Loan Originator to apply for the mortgage  will avoid delays later, especially if the Borrower does not presently have them in their possession.

Not all Loan Programs require the same documents, but there is a group of basic documents reqired for every Loan Program:

• One month of paystubs, or if retired or disable
• Pension Award Letter & proof of receipt
  
• Permanent Disability Award Letter & proof of receipt
  
• Social Security Yearly Award Letter
• W2's or 1099's for the past two years
• Bank statements 1-3 months depending on the Loan Program (all pages)

As simple as it may seem to compile these documents, there are many times when the Borrower does not have them.  For example there are Borrowers who do not keep their paystubs, or bank statements.  There are even Borrowers who do not keep a copy of their W2's or Tax Returns, and it will take them time to obtain new copies.  When the Borrower does not have these initial documents delays are created which could have been avoided if they had started to look for them early in the Homebuying Process.

There are other documents that are needed depending on the Loan Program such as:

• 2-3 years of Tax Returns which will be needed for
• Self-Employed Borrowers
• 1099 Income Borrowers
• State Bonded Program Borrowers
• Veterans Certificate of Eligibility & DD 214 (VA Loans)
• Divorce Decree:
• Proof of receipt of Alimony Payments
• Proof of receipt of Child Support Payments
• Gift Money:
• Copy of Gift Check
• Proof of withdrawal (FHA Loans)
• Proof of deposit
• 401K/IRA/Retirement Accounts
• Quarterly Statement
• Letter from Plan Administrator with proof of available funds for withdrawal
• Terms of withdrawal
• Copy of check for withdrawn funds when received
• Proof of deposit.
  
• Bankruptcy documentation

There may still be other documents that some times are also needed, but these are the ones most common depending on the loan program that the Borrower is applying for.

NOTE:  One other thing Buyers/Borrowers can do to speed up the Mortgage Process is to go through the Bank Statements they will be providing the Lender, and have an explanation written out for all bank deposits which the source of the deposit cannot be identified on the Bank Statement.  These days Lenders need to document and source all deposits, so having these explanations ready would substantially reduce the time required to approve a mortgage.

If the Buyer/Borrower is made aware by their Real Estate Professional of the List Of Documents Required When Applying For A Mortgage early in the Homebuying Process, much of the stress a Buyer/Borrower goes through during the Mortgage Process could be eliminated.  Just a little time spent in preparation and planning, can sometimes save many days, and weeks of delays once the Buyer/Borrower has found the home they want to purchase.

 

 

*************************************************************************************************

 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com