Documents Required to Start The Mortgage Process: GCA Forums

This guide covers documents required to start the mortgage process. There is a big difference between a pre-qualification letter and pre-approval letter. A pre-approval letter carries more weight. Pre-approval means that in a sense borrower has been approved for a mortgage loan. This holds true as long as he or she presents the documents required to process a mortgage application. Qualified verified documents are the proof of what has been stated on the online mortgage application. In this article, we will cover and discuss the documents required to process a mortgage application.

Documents Required to Start the Mortgage Process

To apply for an official mortgage home loan, the mortgage loan borrower will need to provide us with you will detailed documentation of credit and financial history. Lenders need to pull credit report from a credit agency. This will confirm and verify the information provided in the online mortgage home loan application. When applying for a mortgage, you mustyou provide various documents to verify your financial status and eligibility. Here’s a comprehensive list of the documents typically required to start the mortgage process: Government-Issued ID: A valid photo ID, such as a driver’s license or passport. Social Security Number: For credit and identity verification purposes.

Debts and Obligations

Current Mortgage Statements: Provide recent mortgage statements if you own other properties.
Loan Statements: Statements for any outstanding loans, including auto loans, student loans, and personal loans.
Credit Card Statements: Recent statements for all credit cards.

Additional Documents

Divorce Decree: If applicable, a copy of the divorce decree to verify alimony or child support payments.
Bankruptcy Papers: If you have declared bankruptcy in the past, provide the discharge papers and a letter of explanation.
Rental History: If you are currently renting, provide contact information for your landlord and documentation of your rental payment history.

Preparing Your Documents

In the following paragraphs, we will cover documents required for loan officers to start the mortgage process so it can get assigned to a mortgage underwriter. Ensure all documents are up-to-date and reflect your financial situation accurately. Organize them into easily accessible files or folders. Make copies of all documents to submit to the lender. Keep the originals for your records. Some lenders may require digital copies of your documents. Scan and save electronic versions for easy submission.

Submitting Your Documents

The only fee that borrowers pay upfront with a mortgage application will be the cost of the appraisal. There is a sheet that asks for credit card information. Please sign in with credit card information. Lenders will not process the credit card until the time we order the appraisal.

Initial Application: Submit the required documents with your initial mortgage application to expedite approval.
Follow-Up: Be prepared to provide additional documentation or clarification if requested by the lender during the underwriting process.

Having all necessary documents prepared and organized can streamline the mortgage application process and increase your chances of approval. Gathering these documents ahead of time can reduce delays and demonstrate your readiness and reliability to potential lenders. Other documents required to process a mortgage application are the borrower’s and co-borrowers driver’s license and Social Security cards: Or other forms of identification to satisfy the Patriot Act and Gov’t issued ID’s. Click here to get more information about mortgage process

Starting The Mortgage Process

Documents required to process a mortgage application are the following. Any delay with providing the documents required to process a mortgage application will cause a delay in the home closing. Two months’ most recent checking accounts, savings accounts, and other bank statements such as certificate of deposits, IRA accounts We will need all pages of bank statements even if they are blank. In the event you do not have the most recent bank statements handy, you can go to the bank and request a transaction history of bank statement printouts.

Printouts need to be signed by the bank employee or bank teller. The bank statement needs to be dated and stamped by the bank employee. These bank statements are good for 60 days from the date it was signed and issued.

Borrowers who are a member of a credit union they need to provide at least 2 most recent bank account statements. We need every single page of the statement from the credit union even if it is a blank page. Borrowers who cannot find or locate credit union statement they need to go to the credit union and get the credit union employee to sign, date, and stamp your statement. Like a signed bank statement, these statements will be valid for 60 days from the issued date.

Income Documents Required By Lenders

Recent pay stubs covering at least the last 30 days. W-2 forms for the past two years. Complete federal tax returns, including all schedules, for the past two years. Contact information for your employer(s) to verify employment. Profit and Loss Statement: A year-to-date profit and loss statement if you are self-employed.

Business Tax Returns: Complete business tax returns for the past two years. Additional Income: Documentation for any additional sources of income, such as rental income, alimony, child support, or bonuses (e.g., award letters, divorce decrees, lease agreements).

If you are self-employed or business owners, lenders need two years of tax returns, year to date profit and loss statement, and current balance sheet for self-employed borrowers: Page 2 of tax returns must be signed by the customer and preparer if they were prepared by an accountant. Provide all pages even if parts of the tax returns are blank. Another important document needed to process a mortgage application are the “Mortgage”, “Note”, and “Riders” for existing mortgages on the property. Provide a complete set without missing any pages even if the documents are blank. Provide the most recent paycheck stubs by the employer. Provide at least a 30 day period of pay stubs.

Property and Homeowners Insurance Documents Required

Purchase Agreement: A signed purchase agreement for the property you intend to buy. Property Details: Information about the property, including address, type, and estimated value. Homeowners Insurance Information: Details about your homeowner’s insurance provider and coverage. Provide copies of homeowners insurance “declaration page” or name, address, and phone number of the insurance agent that is insuring home: Borrowers who are divorced, lenders are going to require a divorce decree and if paying child support, the lender will require child support documentation. For borrowers paying alimony support payments, the lender would also need copies of the alimony agreement. Divorce decree if applicable. Alimony agreement & child support documentation if applicable.

Asset Information Showing The Down Payment and Closing Costs

Assets used for the down payment and closing costs need to be verified. Bank statements for all checking, savings, and other asset accounts for the past two to three months. Investment Accounts: Statements for retirement accounts, stocks, bonds, mutual funds, and other investments. Gift Letters: If you receive a financial gift to help with the down payment, a gift letter from the donor stating that the money is a gift and does not need to be repaid. Other documents required to process a mortgage application are asset documentation such as 401K, Profit Sharing, and/or Pension Fund statements. Lenders need all pages even though if they are blank. Other assets information such as Investment Stock, Bond, Fund, and/or Portfolio statements.

Executed Real Estate Purchase Contract Triggers Mortgage Process

The lender requires a copy of the real estate purchase contract with all addendum: For buyers purchasing a condo or townhome please include the homeowners association name, phone number, and contact person. Borrowers on social security, please provide a copy of the social security award letter if applicable.

Those who are current renters need to provide 12 months of canceled checks. If directly debited out of the account, lenders will require the last 12 months of bank statements for rent payments.

If rent payments with money orders, lenders will need a history printout from the bank, credit union, currency exchange etc. The name and address of an employee who is authorized to verify employment from the human resources or personnel department. Pension letter if receiving pension income. Bankruptcy papers for those who have filed bankruptcy.

Documents Required to Process Mortgage Application into Underwriting

The above documents, if it applies to borrowers, are required to process a mortgage application: Complete clean organized mortgage loan application packages will be expedited. Delays are normally caused because the borrower needs to dig up the information requested by the lender and the file is missing pages and documents. If you have any questions, feel free to contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.

Click here to contact our experts

FAQs: Documents Required to Start The Mortgage Process

1. What is the difference between pre-qualification and pre-approval letters? An initial assessment letter estimates the amount you can borrow by considering a preliminary evaluation of your financial information. In contrast, a pre-approval letter holds more significance as it signifies that the lender has confirmed your financial details and you are provisionally approved for a mortgage, pending final documentation and approval.

2. What documents are required to start the mortgage process? To initiate the mortgage process, you must present a government-issued ID, Social Security Number, recent mortgage statements (if applicable), loan statements for outstanding loans, recent credit card statements, and any pertinent legal documents, such as a divorce decree or bankruptcy papers. If you are presently renting, documentation of your rental history is also necessary.

3. How should I prepare my documents for the mortgage application? To ensure that all documents are up to date and accurately reflect your current financial situation, organize them into easily accessible files or folders and make copies to submit to the lender. Keep the originals for your records. Additionally, some lenders may require digital copies, so scanning and saving electronic versions for easy submission is advisable.

4. What is the fee associated with the mortgage application? The only fee borrowers pay upfront with a mortgage application is the appraisal cost. You must provide credit card information. Still, the lender will only process the credit card once the appraisal is ordered.

5. What income documents are required by lenders? When applying for a loan, be prepared to provide recent pay stubs and W-2 forms from the past two years, complete federal tax returns with all schedules for the last two years, and contact information for your employer(s). You must present a year-to-date profit and loss statement if you’re self-employed. If you own a business, you must provide business tax returns for the past two years. Additionally, documentation for any additional sources of income, such as rental income, alimony, or child support, must be provided.

6. What asset information is needed for the mortgage application? Bank statements covering the last two to three months must be provided for all checking, savings, and other asset accounts. Additionally, statements for retirement accounts, stocks, bonds, mutual funds, and other investments are mandatory. Suppose you receive a financial gift to assist with the down payment. In that case, it is essential to have a gift letter from the donor affirming that the money is a gift and does not require repayment.

7. What property and homeowners insurance documents are required? Provide a signed purchase agreement for the property you intend to buy, information about the property, and details about your homeowner’s insurance provider and coverage. Copies of the homeowner’s insurance declaration page or contact information for the insurance agent are needed.

8. What happens if there is a delay in providing the required documents? Provide the necessary documents to ensure the home closing process is timely. Therefore, it is essential to gather and submit all required documents promptly to avoid delays.

9. What additional documents might be needed for the mortgage application? Based on your circumstances, you may need to provide extra paperwork, such as a duplicate of the real estate buying agreement, one year of voided rent checks (if you rent), social security award notifications, retirement fund notifications, and documentation related to bankruptcy.

10. How can I ask the lender questions about the mortgage application process? If you have any questions, contact the lender at 800-900-8569, text them for a faster response, or email gcho@gustancho.com.

Gathering and organizing these documents in advance can streamline the mortgage application process, minimize delays, and illustrate your preparedness and dependability to potential lenders.