In order to obtain a mortgage loan, you need documentation to prove your assets, debt, and income. Some of the documents may be able to be obtained for you by the lender, and some you will need to bring. You can ask your lender what you should bring. The rest of this article will give you a guide to what is generally needed to obtain a mortgage loan, so you can prepare.
To prove to the lender that you will be able to make payments on the mortgage loan, the lender will want to verify your income. The lender will verify your income through paycheck stubs, federal tax returns, and 1099 forms. You may only need one year of returns but that depends on your lender. Paycheck stubs and federal tax returns are for most employees and 1099 forms will be necessary if you work as an independent contractor.
If you are a business owner, you will need to bring documentation on the revenue, income, and expenses of the business. Like employees, business owners will need to show filed returns to prove their income levels.
The next part of what you will need to bring your lender is proof of your assets and debts. You can prove your assets through brokerage statements, bank statements, automobile titles, and other documentation that proves you own an asset. Debts can be shown through car loan statements, student loan statements, credit card statements, and other statements to show your debt and monthly payments. Child support information documentation should be included and will be considered in a similar way to your other payments.
The lender will be using all of the information you bring to calculate a debt-to-income ratio that will allow the lender to determine if the lender thinks you are the best place to invest funds. The lender will also check your credit report to see if you meet your obligations.