LI Mortgage Broker

Being Prepared When You Apply For a Mortgage

All lenders are now required to verify your income and financial information before giving you a mortgage loan. Your lender or mortgage broker should give you a specific list of what it will need. In general, most request the following:

  • A purchase contract, if you have one for the home you are buying.
  • Social Security numbers or individual taxpayer identification numbers for all borrowers.
  • Your home addresses for at least the past two years.
  • Current names, account numbers, and balances of checking, savings, money market, retirement, and credit card accounts.
  • The address of your bank branch.
  • Checking and savings account statements for the past three months
  • Your most recent pay stubs, W-2s, or other proof of employment and income verification.
  • Federal income tax returns for the past two years.
  • Evidence of any other income you receive (child support orders, Social Security award letters).
  • Balance sheets and tax returns if you are self-employed.
  • Divorce settlement papers if applicable.
  • Canceled checks for rent or utility bill payments, to show payment history.
  • Information on other consumer debts, such as credit cards, car loans, furniture loans, student loans, and department store credit cards.
  • Gift letters, if you are using gifts from parents, relatives or organizations to help cover the down payment or closing costs; gift letters state that the money you received is a gift and will not have to be repaid.

These documents will help a lender compare your debt payments against the income and assets you have to pay off the debt. Without this information, lenders cannot make a proper assessment of affordability, and borrowers could wind up in over their heads.

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