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Mortgage Loan
Besides your credit score and the other five qualifications you
must meet to finance a real estate mortgage loan, you need to gather
papers and documents. Speed up your financing and make your life
easier. Organize your papers into a three-ring binder or file system.
You won’t need all of the documentation listed below. However,
the more information you gather, the more likely you will be to
get the best loan rates. Keep in mind that all of these documents
may not be needed for all types of loans. Documentation
Required for Real Estate Mortgage Loan
Whether you want to buy your first
home or many investment properties to build wealth, this checklist
will help you save money on loan costs.
1. Proof of Income for mortgage loan
Include copies of your last two pay stubs or other
proof of employment and income verification. If you are receiving
fixed income like trust income or social security, then include
the beneficiary letter stating how much you get.
For self-employed, you will need to prove that you
have been in the same line of work or business for two or more years.
If self-employed, show a copy of your business license
for two or three years to show you have been in that business for
at least two years. If you don’t have these, then show whatever
you do have to evidence you have been in business for at least two
years in the same line or business field. You may also ask a CPA
to amend your income tax returns for the previous two years and
then write a letter verifying that you’ve been self-employed
for at least two years.
2. Tax returns for mortgage loan
Provide tax returns for the last two years or at least
the last two years of W2’s and/or 1099s if you don’t want
to disclose tax returns.
If you’re self-employed, the mortgage company
may require your personal and business tax returns for the previous
two years and your company’s year-to-date Profit and Loss Statement.
If you own a business, you may need a Financial Business Statement
prepared by an accountant.
3. Bank account records for mortgage loan
Gather your account numbers, address of your bank
branch, along with checking and savings account statements for the
previous two-to-twelve months. You only need the last two months’
bank statements in most cases. Most lenders will only need twelve
months bank statements when you are trying to get a "full doc"
loan (with the best rates) instead of stated income for a self-employed
individual. Talk to your loan officer about whether twelve months
of bank statements will help you get a better rate.
Include all bank accounts, savings accounts, retirement
accounts, and investment accounts. Include any account that you
sign for, even if your spouse also signs on the account, and even
if your spouse does not apply for the loan with you. Financial assets
like these are considered important by lenders as a reserve, particularly
now that property values are not rising as quickly.
4. Driver's license and social security card photocopies
for mortgage loan
5. Proof of housing payments for mortgage loan
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