Are you finally getting into the real estate market? There are a few key items you’ll need to prove your reliability to a mortgage lender.
Previous Tax Returns
To ensure the earnings information you’ve provided to the lender, you’ll need tax returns for the two years prior to your mortgage application. In addition, you may also be required to provide your W-2s as backup documentation.
Bank Statements
For your down payment, you’ll need to present bank statements to show you have a cushion in case interest rates increase. If you do get money gifted to you for your down payment, you’ll need a letter to prove you’re not indebted to the provider.
Recent Pay-stubs
It can be much more difficult to get approved for a mortgage if you have a patchy work history or happen to be self-employed. You’ll need 2 months of recent pay stubs to prove consistent employment. The pay-stubs provided should also be an accurate reflection of the salary you’ve provided on your application to ensure no discrepancies.
Investment Statements
It’s certainly a good sign to the lender if you have a healthy balance in your checking and savings accounts. But you’ll also need to provide any statements for mutual funds and other investments. While they may not be necessary to prove financial soundness, they will help with approval if you have a lot of money squirreled away.
A Listing Of Debts
A lender will also want to know about any outstanding debts like auto loans, credit card payments or student loans. This will give the lender a good sense of your honesty and your ability to manage your mortgage.
Mortgage approval may seem like a time-consuming process with no certain end. By having the appropriate documentation and being upfront about your debts, you may be able to speed up the timeframe. If you’re currently perusing your mortgage options, contact us for the inside scoop.
