Here Are The Documents You Need For A Mortgage Pre-Approval
When qualifying for a mortgage it is expected that certain documentation representing your financial life will be expected. So here is a list of some ordinary (and not so ordinary) things you may be required to provide (any why)
Standard Mortgage Documentation:
1. Tax returns (most recent 2 years, all pages)
Mortgage lenders want to get the full story of your financial situation. You’ll probably need to sign a Form 4506-T, which allows the lender to request a copy of your tax returns from the IRS.
Lenders generally want to see two years’ worth of tax returns. This is to make sure your annual income is consistent with your reported earnings through pay stubs and there aren’t huge fluctuations from year to year. Please provide all pages and all W2’s for every job worked in those years.
2. Pay stubs, W-2s or other proof of income
Lenders may ask to see your last three pay stubs . Your tax returns help give them a clear idea of your overall financial health, while pay stubs help them gauge your current earnings. If you’re self-employed or have other sources of income (such as child support), you may need to show your lender proof through 1099 forms, direct deposits or other means.
3. Bank statements and other assets
When assessing your risk profile, lenders may want to look at your bank statements and other assets. This can include your investment assets as well as your insurance, such as life insurance. Please provide the most recent two months full / official bank statements. They must have your name and the bank logo on it to prove authenticity. Not that I don’t believe you, it’s all about what you look like on paper.
Lenders typically request these documents to make sure you have several months’ worth of reserve mortgage payments in your account in case of an emergency. They also check to see that your down payment has been in your account for at least a few months and did not just show up overnight.
4. Credit history ( Executive Mortgage provides this)
In order to assess you as a borrower, lenders often pull your credit report — with your verbal or written permission.
5. Gift letters (If receiving a gift)
Your friends and family might help you buy a house by giving you money. If that’s the case, you’ll need to provide a written confirmation the money is indeed a gift and not a loan. The documentation should list their relationship to you as well as the amount of the gift.
6. Photo ID
You’ll likely need to provide a photo ID, such as a driver’s license. This is simply to prove you are who you’re claiming to be. Ensure it’s valid and not expired
7. Renting history (Not in all cases)
For buyers who don’t already own a home, many lenders will request proof that you can pay on time. They may ask for a year’s worth of canceled rent checks (check that your landlord has cashed). Or, they might ask your landlord to provide documentation showing that you paid your rent on time. Your renting history is especially important if you don’t have an extensive credit history.
8. Bankruptcy Paperwork (If Applicable)
If you encountered a bankruptcy in the last 7 years you may be required to provide the bankruptcy paperwork, including the “discharge of Debtor” page, an Example can be found here. Please ensure you have all schedules because the lender may want to verify the debt has been removed and is no longer held against you.
9. Letters of Explanation
Sometimes a letter of explanation is required, these are very simple to make. If your scenario fits one or more of the following, please provide a simple letter explaining:
1) If someone that isn’t on the loan is on the bank statements, explain the borrower has full access to the account
2) If You encountered a bankruptcy or foreclosure, a simple letter explaining why it happened (result of divorce / job loss / etc) and why you don’t foresee it happening again.
3) If you are refinancing and taking cash out on your home, a brief explanation of what you intend to use the money for
If you can review the above information and get most of it together we will have a solid, clean submission that will ease the stress of buying a home. If you have any questions, please call me directly!
Thank you!
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Justin Scott
Loan Officer
NMLS 878581
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
Executive Mortgage
NMLS 271650
909 . E Walnut Street
Green Bay WI 54301
