Paperwork is a huge part of the mortgage process, so the better prepared you are - the smoother applying for your mortgage loan can be.
There are three categories of documents your lender may request: income, expenses, and assets. Knowing what to expect can help you gather your paperwork and turn it in with ease.
Mortgage lenders typically verify your income in two different ways. First, they’ll want to see your most recent Form W2 or Form 1099 (if you are self-employed), and they may also ask you to provide recent tax returns.
Some lenders may accept signed copies of your tax returns; however, many also use the IRS income tax verification process to ensure the forms you provide are the same as the forms filed with the IRS.
In addition to tax information, be prepared to send in at least a month’s worth of pay stubs to your potential mortgage lender.
Along with income verification, your lender may request verification of your expenses to get a better idea of your debt-to-income ratio. Providing them a copy of your credit report is a great way to show previous debts and other financial responsibilities on your plate.
Along with debts, a lender will generally ask for proof of previous rent or mortgage payments. You can provide a copy of the checks used to pay your rent; however, some lenders may ask you to sign a form allowing them to verify your rent independently, without you having to send in documents.
Lenders also ask for borrowers to send verification of assets owned. This may include but is not limited to: stock portfolios, IRA accounts, or other liquid assets.
Although this list isn’t completely comprehensive of all documents needed, it’s a great place to start when preparing for mortgage loan approval.
It's simple, really. Help people. Each client is unique. Every situation deserves special attention. Each home, neighborhood and community is a perfect fit for someone. Whether you are part of a grieving family settling an estate, 1st time home buyer, Upsizing, simplifying or find yourself starting a new life chapter, I am eager to understand your needs, provide you with options, guide you along and help you to make insightful, shrewd decisions. What journey do you find yourself embarking on? I would love to share the adventure with you - keeping it exciting, fun and rewarding! I am a FULL TIME Realtor - working my schedule to fit with your lifestyle and adapting to your technological abilities. Together we can make it happen! In appreciation for your business and in keeping with the spirit of thankfulness to the community that has supported me along the way, a portion of each commission is donated to charity.