Five Documents Without With You Cannot Obtain Mortgage


When planning to purchase a home, biggest concern of all time is to obtain a mortgage. Moreover, mortgage rates keep on fluctuating and this further add to your concern. When applying for mortgage loan, process of approval requires you to present documents to support your claims. In addition to this, documents also support your willingness to assume mortgage loan.

Even if a lender has pre-approved the loan, borrower will have to present all the essential documents throughout the course of loan approval. Sooner or later, you have to undergo this process, so it is always worthy to present documents early to avoid derail of your application. Prior to making offer on home, you must be prepared with documents as and when required to approve your loan. To ease the process of loan approval, here is a list of essential documents that is asked before or at the time of approve loan.

List of documents essential for loan approval

Most of the borrowers fail to explain applicant what documents are required for obtaining mortgage. Several documents you should have in hand to give to your potential mortgage loan authority.

Tax returns of two years: In general, loan officers require you to present income verification by offering tax returns of previous two years. In addition to this, you are also asked for tax return value of three years accompanied by schedules. This is however required in some of the cases.

Income Proof: Lenders often require pay slips of one month or even more along with W2 forms that is meant for both borrowers and co-borrowers. However, as per the standards of new mortgage lending, lenders nowadays ask for pay stubs of around two years. In addition to this, lenders can demand bank statements along with rent checks if a part of your annual incomes originates from renting properties.

Bank Statements of last three months: When applying for mortgage, be prepared with your bank statement value for three months of each bank or investment account that you own. This also includes brokerage account online, retirement account and savings bank account. Even if its jumbo mortgage, you may require bank statement of three months.

Proof for timely payment of rent: If you have been living or lived on rent, it is very important to present rent checks or bank statement of 12 months. This document is required to prove that you are responsible and pay rent on time.

Papers accompanied by gift money: People using gift funds as a part of purchase are also required to present documents for the same. For this, you may require an affidavit signed by giver to prove that the money is gift and not loan. Besides this, you may be required to show paper for money that includes deposit slips.

Information of credit account: When applying for mortgage loan, you may require account number or address for any credit debt and loan you own.

Immediately after applying for mortgage loan, you may require these documents. Sooner you will present the documents, faster the amount of loan will be approved and sanctioned. Good thing is that everything will go smoothly if you will handle the situation wisely. If you want to learn more details please visit Credit Tech

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