QandAs: Loans

What Paperwork is needed for a Mortgage Loan Application?

Answer:
Applying for a mortgage loan can be a stressful

period. Lenders require a lot of documents, and the process can be overwhelming for first time buyers.

Before applying for a home loan, it is best to research the loan requirements beforehand, and then gather all pertinent information.

In a nutshell, the mortgage lender will evaluate your income and debts. Their objective is to ensure that you can afford the mortgage payment. To begin the loan process, borrowers must complete a mortgage application. The application will request detail information such as income, assets, debts, etc. Even so, applicants must provide additional documentation.

The amount of information requested will depend on the type of mortgage loan. Some loans require full documentation, whereas others are no doc or low doc loans. On average, borrowers must supply W-2’s for the past two years. If self-employed, supply the mortgage lender with copies of your Federal tax return.

Additionally, mortgage loan applications require copies of your past two pay stubs. If you have additional income such as alimony or child support, provide documentation. Do you already own a home? If so, supply a monthly mortgage statement that lists taxes and escrow amounts. Other important documents include a copy of your driver’s license, bank/financial statements, and agreement of sale (if applicable).


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