Documents Required

Documents Needed to Process a Mortgage Application

What documents are needed to process a mortgage application?

There is a big difference between a prequalification letter and a pre-approval letter.  A preapproval 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.

How to apply for a 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 your credit and  financial history.  We need to pull your credit report from a credit agency and which will confirm and verify the information provided in your online mortgage home loan application.  The following documents will be required for us to process and underwrite your 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 your home closing.

1.  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 your bank statements even if  they are blank.  In the event you do not have the most recent bank statements handy, you can go to your 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.
 2.   If you are a member of a credit union,  you need to supply at least 2 most recent account statements.  We need every single page of the statement from your credit union even if it is a blank page.  If you cannot find or locate your credit union statement, you need to go to your 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.
3.   Other documents needed to process a mortgage application is two years tax returns and W2’s for salaried / hourly wage borrowers.  Make sure your overtime hours and pay is noted because we can use overtime pay and bonuses if you had consistent overtime and bonuses for at least two years.  If you are self employed or a business owner, we 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. . We need all pages even  if  parts of the tax returns are blank.
 4.    Another important documents needed to process a mortgage application are the  “Mortgage”, “Note”, and “Riders” for existing mortgages on property. We need the complete set without missing any pages even if the documents are blank.
5.    We also need the most recent pay check stubs by your employer.  We need at least a 30 day period of pay stubs.
 6.   We need copies of homeowners insurance “declaration page” or name, address and phone number of insurance agent that is insuring your home.
 7.     If you are divorced, we are going to require your divorce decree and if you are paying child support, we will require child support documentation.  If you are paying alimony support payments, we would also need copies of the alimony agreement.Divorce decree if applicable. Alimony agreement & child support documentation if applicable.
8.   Other documents needed to process a mortgage application are your asset documentations such as  401K, Profit Sharing, and/or Pension Fund statements. We need all pages even though if  they are blank.
9.    Other assets information such Investment Stock, Bond, Fund, and/or Portfolio statements.
10.  The only fee that you will pay upfront with a mortgage application will be the cost of the appraisal.  There is a sheet that asks for your credit card information.  Please sign it with your credit card information.  We will not process the credit card until the time we order the appraisal.
11.   Other documents needed to process a mortgage application are the borrower’s and coborrower’s Driver’s License and Social Security card, or other forms of identification to satisfy the Patriot Act. Gov’t issued ID’s.
12.   We also require a copy of the real estate purchase contract with all addendums. If you are purchasing a condo or town home please include the homeowners  association name, phone number, and contact person.
13.  If you are on social security, please provide a copy of social security award letter if applicable.
14.   If you are a current renter, you need to provide 12 months of cancelled checks.  If directly debited out of account, we will require the last 12 months of bank statements. If you made your rent payments with money orders,  we need history printout from bank, credit union, currency exchange etc.
15.   The name and address of an employee who is authorize to verify your employment from your  human resources or personnel department.
16.  Pension letter if you are receiving pension income.
17. Bankruptcy papers if you have filed bankruptcy.
If you can have the above documents needed to process a mortgage application, you mortgage loan application process will be expedited.  Delays are normally caused because the mortgage loan borrower needs to dig up the information requested by the mortgage lender.  If you have any questions, feel free to contact me at 262-716-8151 or email me at gcho@gustancho.com or visit me at  www.gustancho.com .
Gustan Cho NMLS ID 873293

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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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