Documents Needed To Process A Mortgage Application

This BLOG On Documents Needed To Process A Mortgage Application Was UPDATED On June 22, 2017

There is a big difference between a pre-qualification letter and pre-approval letter.

  • A pre-approval letter carries more weight and in a sense, the mortgage loan borrower has been approved for a mortgage loan as long as he or she presents the documents needed to process a mortgage application which is the proof on what the mortgage loan borrower has stated on his online mortgage application.

Applying For Home Loan

To apply for an official mortgage home loan, the mortgage loan borrower will need to provide us with you will detailed documentation of credit and  financial history.

  • Lenders need to pull credit report from a credit agency and which will confirm and verify the information provided in the online mortgage home loan application. 
  • The following documents will be required for loan officers to process and underwrite borrowers mortgage application.

Documents Needed To Start Mortgage Process

Documents needed to process a mortgage application are the following.  Any delay with providing the documents needed to process a mortgage application will cause a delay in the home closing.

  • Two months most recent checking accounts, savings accounts and other bank statements such as certificate of deposits, IRA accounts.
  • We will need all pages of bank statements even if  they are blank. 
  • In the event you do not have the most recent bank statements handy, you can go to bank and request a transaction history of your bank and the statement needs to be signed by the bank employee or bank teller. 
  • The bank statement needs to be dated and stamped by the bank employee. 
  • These bank statements are good for 60 days from the date it was signed and issued.
  • Borrowers who are a member of a credit union they need to provide at least 2 most recent bank account statements. 
  • We need every single page of the statement from credit union even if it is a blank page. 
  • Borrowers who cannot find or locate your credit union statement they need to go to credit union and get the credit union employee to sign, date, and stamp your statement. 
  • Like a signed bank statement, these statements will be valid for 60 days from the issued date.
  • Other documents needed to process a mortgage application is two years tax returns and W2’s for salaried / hourly wage borrowers. 
  • Make sure overtime hours and pay is noted because we can use overtime pay and bonuses if borrowers had consistent overtime and bonuses for at least two years. 
  • Borrowers are self employed or a business owner, lenders need two years tax returns, year to date profit and loss statement and current balance sheet for self-employed borrowers.
  • Page 2 of tax returns must be signed by customer and preparer if they were prepared by an accountant.
  • Provide all pages even  if  parts of the tax returns are blank.
  • Another important documents needed to process a mortgage application are the  “Mortgage”, “Note”, and “Riders” for existing mortgages on property.
  • Provide complete set without missing any pages even if the documents are blank.
  • Provide the most recent pay check stubs by employer. 
  • Provide at least a 30 day period of pay stubs.
  • Provide copies of homeowners insurance “declaration page” or name, address and phone number of insurance agent that is insuring home.
  • Borrowers who are divorced, lenders are going to require divorce decree and if paying child support, the lender will require child support documentation. 
  • Borrowers paying alimony support payments, the lender would also need copies of the alimony agreement.
  • Divorce decree if applicable.
  • Alimony agreement & child support documentation if applicable.
  • Other documents needed to process a mortgage application are asset documentations such as  401K, Profit Sharing, and/or Pension Fund statements.
  • Lenders need all pages even though if  they are blank.
  • Other assets information such Investment Stock, Bond, Fund, and/or Portfolio statements.
  • The only fee that borrowers pay upfront with a mortgage application will be the cost of the appraisal. 
  • There is a sheet that asks for credit card information.
  • Please sign it with credit card information. 
  • Lenders will not process the credit card until the time we order the appraisal.
  • Other documents needed to process a mortgage application are the borrower’s and co-borrower’s Driver’s License and Social Security card, or other forms of identification to satisfy the Patriot Act. Gov’t issued ID’s.
  • Lender require a copy of the real estate purchase contract with all addendum.
  • Buyers purchasing a condo or town home please include the homeowners  association name, phone number, and contact person.
  • Borrowers on social security, please provide a copy of social security award letter if applicable.
  • Those who are a current renter need to provide 12 months of cancelled checks.  
  • If directly debited out of account, lenders will require the last 12 months of bank statements for rent payments.
  • If  rent payments with money orders, lenders will need history printout from bank, credit union, currency exchange etc.
  • The name and address of an employee who is authorize to verify employment from human resources or personnel department.
  • Pension letter if receiving pension income.
  • Bankruptcy papers for those who have filed bankruptcy.
The above documents if it applies to borrowers are required to process a mortgage application,
  • Complete clean organized mortgage loan application packages will be expedited. 
  • Delays are normally caused because the mortgage loan borrower needs to dig up the information requested by the mortgage lender and the file is missing pages and documents. 

If you have any questions, feel free to contact us at 1-800-900-8569 or text Gustan Cho at 262-716-8151 or email us at  gcho@gustancho.com  .

Gustan Cho NMLS ID 873293
The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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