Personal Documentation Requirements For Mortgages

I thought it might be time for a refresher on what documentation and information that a client needs to provide in order for a loan to be done. Every loan will not need all of the following documents, but it is good to make sure you have it all on hand just in case you need it.

When you're ready to apply, you need the most current information on your monthly income and debt, a total of your assets, your social security number, and employment information.

Lets take these one at a time.

1. Documenting your income - You will need to provide 30 days worth of pay stubs and last two years W-2 statements (used when you file your taxes). Or, if you are self-employed and have been for several years, you can provide copies of the last 2 years tax returns. You may also provide up to 12 months worth of bank statements to help prove your income.

2. Documenting your debts - This is an easy one. We pull your credit report and it lists all revolving (credit cards and lines of credit) and installment (i.e. your car loan, your current mortgage, etc.) debt, as well as any judgements and/or collections that have been placed against you. This will also provide all the payment and term information.

3. Documenting your assets - When you apply for a loan, you make claims of assets. These are verified by providing your most current bank statement and any other statements (savings, 401(k), IRA, etc.) you may get on a periodic basis. The more assets you can prove, the better you look from a credit risk standpoint.

4. Documenting your employment history - The lender typically requests a verification of employment for you within a couple of days before loan closing.

And that is pretty much it. The other personal information,such as current address and social security number, is given at the time the application is taken. Having these things ready and organized at the start of the process makes the whole experience go smoother and be more enjoyable.

Your comments are always welcome!

Brought to you by Professional Mortgage Group, Inc. in beautiful Columbia, Missouri.