We know that having your own home is very important. This is probably the most important decision in your life and can cause both excitement and stress. Owning a home can mean family security or an investment for the future. How can you get that home mortgage easily? Are there any shortcuts for approval. In this article, we give you the “10 Key Documents for Mortgage Approval.”
10 Key Documents for Mortgage Approval
Remember always that pre-approval is not a guarantee that your mortgage will be approved. The success of your application depends on the documents that you will submit. At this point, it is very important that you coordinate directly with a mortgage broker or we can refer one for you.
- W2’s from a current or prior employer. This is the form from employers which states how much they paid you in a year. This is very important to corroborate your income in your application.
- Pay check stubs or canceled checks maybe used in lieu. In case you do not have a W2 form this is also acceptable.
- Prior 2 year’s tax returns. You need to show that you are a taxpayer in good standing, so always pay promptly.
- List of debts or liabilities (this will appear in your credit history). A good credit history is important and this refers to your credit score.
- List of your assets. In case you will default on your mortgage payments it is important to show that you have more net worth and is very liquid.
- Credit report. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers.
- Signed sales agreement. This is also known as a contract to purchase real estate or a residential purchase agreement, a real estate purchase contract is a binding, bilateral agreement between two or more parties with legal capacity for the purchase, exchange or other conveyance of real property.
- Proof of additional income, if applicable.
- Divorce documentation that illustrates that you’re legally divorced and its related separation agreement, if applicable
- Bankruptcy documentation, if applicable
Other Documents for Mortgage Approval
Remember that there might be more documents needed or will be required of you. It all depends on how sufficient the data is from the documents or if they will present that you are worthy to receive a mortgage. Some people like entrepreneurs for example even need a “letter from a Certified Public Accountant” to prove their income.
Mortgage approval highly favors those with a steady stream of income. In lieu of the W2 tax returns, tax returns can also substantiate the income you are receiving. Prepare for the questions and for more documents if ever lenders will ask more.
Remember that having a mortgage broker is also important since they can help you submit loans to multiple lenders. You can contact us and we can provide you with someone that can be of help.