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Initial Documents
What are the initial documents I need to send to a lender or loan originator to start the process of an application?
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15 Replies
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Initially you need to complete the online mortgage loan application. If employed, 2 years W2S, 30 days paycheck stubs, and 60 days of bank statements
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Here’s a link too my standardize doc list: https://docs.google.com/document/d/1j7vBtof2dG3Kp7zIyXW_3YGiUNmQ6oy-cStdZtlYUng/edit?usp=sharing
docs.google.com
Access Google Docs with a personal Google account or Google Workspace account (for business use).
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Thank you for your responses.
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It’s pleasure to help! That’s why Gus created this forum… It’s a way to get in contact with real professionals to ask questions, without having to be sold something… It would be of great help if you share this forum to your friends/family/coworkers… We’re on a mission to cut the fluff and give real relevant information to help people close the gap to homeownership.
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So if I have 3 different employers for the past 2 years, I need to submit W2s for each, right?
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Yes… Your would need to provide W2s for the previous last years for all employers (in this case 2022 & 2021)… Plus your last 30-days of paystubs for your current employers you’re still working with…
If you need any assistance through this process you can schedule a time to speak with me here: https://bit.ly/homeloanconsultation
—
Nelson Thompson NMLS# 730257 aka Mortgage Sensei
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No. You go by the most recent job offer letter.
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Nelson Thompson is correct that you need to provide W2s for past 2 years but the qualifying income is based on the most current updated W2 income and current employer
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It is useful to have the appropriate documents when applying for a mortgage.
Below is a list of the basic documents you must submit to your lender or loan originator to commence the process.
Identity Documents.
- Government ID – A driver’s license, passport, or state ID is accepted as identification.
Verification of Employment and Income.
- Pay Stubs – Mark looks for the recent pay stubs for the past 30 days.
- W2 Forms – Two-year W2 forms are a must.
- Tax Returns – Prepare personal tax returns for the last two years, especially all schedules.
- 1099 Forms – Provide 1099 forms from the past two years if you are self-employed or have other income sources.
Employment History
Give all details regarding your employment history, which includes the name of the employer, address, job title, and the dates of employment in the last two years.
Asset Documentation
- Look for bank statements from all accounts held for the last two or three months.
- Also, look for retirement accounts, investment accounts, or any other assets.
Debts and Amortization Schedule
Prepare a schedule detailing all current debts, including credit card debt, student loans, car loans, etc., considering the monthly repayments and current balances.
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- Credit Information
One thing to note is that while lenders will pull your credit report, any negative items, including late payments and bankruptcies, should be explained.
Property information (if any)
- If I have already acquired the property, I have included a copy of the purchase agreement in the purchase subsection.
- In this case, it would be purchased for all necessary other information regarding the purchased property, including but not limited to its location, address, purchase cost, and whether the property is real.
Other Required Documents
- If any part of your down payment is gifted, a gift letter from the donor may be required.
- Otherwise, if the property is purchased, the owner may request help.
- During that time, the relevant letter can be provided to the owner.
If possible, I will also provide the other party with relevant paperwork regarding any specifics of the divorce that specify child support or alimony procedures.
Plan on giving your SSN for the credit check.
All of these documents are in their proper place, allowing you to receive a quick processing time for a mortgage application, thus assisting you in acquiring a faster one. However, remember that a lender may ask for more than that so be prepared and keep everything organized.
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What happens if I don’t have all these documents initially?
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Getting all necessary documents before commencing the mortgage application is always better. But if you do this, the challenges you can face are below.
Delays in Processing
Timeframe Extension: If you still need to include some documents, your application might not be processed on time, forcing the lender to wait for you to submit the necessary documentation.
Conditional Approval
Conditional Status: Certain conditions, such as providing more documents, will be required for you to receive the loan. It isn’t a guarantee at this point, but there is a chance for it to break into conditional approval.
Increased Stress
Pressure to Gather Documents: Sometimes, the pressure to quickly gather or submit the documents can make the individual feel confused. This increases the chances of committing mistakes.
Impact on Loan Terms
Possible Changes: Approval timelines can impact loan rates if the lender has missing documentation.
Communication with the Lender
Open Dialogue: Establish Contact Your contact with the lender is highly important. If you know the missing documents, state them to the lender and be on the lookout for potential substitutes while working with the lender.
Flexibility of Lenders
Varied Requirements: There may be several lenders who may require certain things from you, and some of them may not be as strict more DETAIL on places of employment as regards their initial requirements. Some, for instance, may permit you to provide some documents later in the process.
Gathering Documents
Prioritize: To avoid slowing the process, get the most important documents, such as proof of income and identity.
There are cases where some requirements may need to be included for the commencement steps of the process. In an ideal state, however, prior preparation for details is the most ideal, and it helps accelerate the process. Even when you don’t have all the necessary documents, informing your lender what documents you have and which are still missing can help better deal with the problem.
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Can you provide a checklist of required documents?
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Of course! Here is a generic list of essential paperwork while applying for a mortgage. Having these documents on hand can help in increasing the efficiency of the process:
Mortgage Application Management Document Checklist:
Personal Identification:
Government-issued ID: Passport or a driving license.
Income Requirements:
Pay Stubs: Recent pay stubs from the last two months.
W-2 Forms: W-2 forms from the last 2 years.
Tax Returns: Please provide all schedule 1040s of personal tax returns for the last two years.
1099 Forms: For self-employed individuals and other income categories: 1099 for the last two years.
Employment Details:
Employment History: Records of employment history over the last 2 years with names and addresses of employer(s) and title(s) held.
Asset Proof:
Bank Statements: Last two to three months of record statements from all the bank accounts.
Investment Accounts: Any record statements of investment and retirement accounts.
Debt Details:
List of Debts: Current status of all debts and other active accounts with credit cards, student loans, mortgages, and any car loans, as well as their latest outstanding balance with monthly payments.
Credit Information:
Credit Score: While lenders will pull your credit report, be prepared to explain any negative items.
Property Information (if applicable)
Purchase Agreement: For real estate transactions, you may need to provide a purchase agreement or other relevant documentation for the property you want to buy.
Property Details: This usually contains information about the property, such as the area, how much it has been purchased for, and the type of property, whether a single-family home or a condominium.
Additional Documentation
Gift Letters: Explain in your gift letter that part of your down payment is a gift and that the money came from a person specified in the letter.
Divorce Decree: If you have any that restrict you through stipulation, alimony, or child support payment, relevant documents should also be attached.
Social Security Number: Always have this number in case it’s needed for the credit check.
Optional Supporting Documents
Rental History: For those current renters, you can submit the history of your rental payments to support your application.
Bankruptcy Documentation: If you have undergone bankruptcy, include the discharge paperwork.
Current Lease Agreements: If you’re renting, you may also provide your current lease agreement.
This is a list of basic documents crucial for the mortgage application process. The lender you will be going to may have an outline stipulating what documentation is needed and why. Being organized and prepared can help the process speed up significantly.
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