The anticipation mounts once you settle on the home of your dreams and all that stands between you and home ownership are the seemingly endless mountains of mortgage paperwork. To get closer to the final step without roadblocks, go into the mortgage process prepared. Gather together all the necessary documents and information to speed up your application approval.
Your personal information is necessary to establish the mortgage application. Your full name, social security number and birth date are the basic elements necessary for this section of the application. Your lender might require copies of a picture ID and your social security card to verify your identity.
Income & Employer Details
Your income affects the amount a mortgage company is willing to lend you. The lender needs documentation as evidence of your income. Your W2 forms for the last year or more are often required. The lender might also ask for your previous tax returns and current pay stubs, which display your year-to-date earnings for verification. You also need the name, address and telephone numbers of your employers, typically for the previous two years.
Along with your income, your assets help the company assess how much you are eligible to borrow. Your bank account information, including the balance, is usually necessary. Documents on other forms of assets, such as IRAs, CDs and stocks are also part of the mortgage application process. The mortgage company might ask for information on the value of your personal property.
Your existing debt affects the amount of the loan you can get. The mortgage company only allows you to carry a certain percentage of your income as debt. According to the Federal Reserve Board, ratios such as "28 and 36" are common. This means your housing expenses cannot exceed 28 percent of your gross income and all of your debts total, including the mortgage, cannot exceed 36 percent. The lender needs the account number, contact and balance information of all your debts to determine where you fall on the scale.
The purchase contract for the home you are buying is a document needed for the application. This provides the financial information needed to determine if you're eligible for the necessary loan. The lender typically also wants information on your current housing situation including information on your current mortgage or proof of your lease if you are renting. If you own any rental properties, you need information on these locations. This includes the mortgage information and tax returns for the properties. A copy of any leases you've executed might also be necessary.
- tax time image by Gale Distler from Fotolia.com
- How to Request Mortgage Origination Documentation
- Standard Information for a Residential Mortgage Application
- Mortgage Qualification Process
- How to Obtain a Home Mortgage With a Structured Settlement as a Proof of Income
- Do I Need to Notify My Mortgage Company If I Rent Out the House?
- Letter of Explanation to Mortgage Lenders
- Do Mortgage Lenders Use My Net or Gross Income?
- How to Get Copies of a Mortgage Deed Promissory Note