If you are getting ready to apply for a mortgage, you probably realize that there is a lot of paperwork that you need to do to get the mortgage completed. You will need to be certain that you do not miss any of the essentials, as this can delay your mortgage process and make it harder to finalize your loan. The more organized you are before the loan process begins, the better your overall experience with this kind of lending will be.
If you are working with a mortgage broker, you might be given some assistance and reminders to help you to collect all the right documents for this process. This can be a big help if you are not aware of the process or have never secured a mortgage before. Making sure to utilize all the tools available to you during the mortgage process is important, and a mortgage broker will make your mortgage process much more seamless and straightforward from start to finish.
Top 10 Items You Need for a Mortgage
1. Personal ID
You will need to be able to provide a photo ID for your loan process to identify you and to verify your address. This might be a driver’s license, but it can also be a US-issued passport. You will need to be sure that you verify with your lender which forms of ID they might also accept if you do not have either f these items to provide.
2. Good Credit
While you might be able to get a home loan with damaged credit, it can be much more difficult to do so. You will have a much better mortgage experience, as well as a much better interest rate, if you take the time to get your credit in order before you apply for your mortgage. Paying off debt and dealing with past debt issues can make your mortgage much more affordable over time.
3. Pay stubs
You will need to be able to show your monthly income when looking to get a mortgage. Lenders need to be able to prove that you had the income to support the purchase at the time that the loan was finalized and funded. Making sure that you can offer paystubs is often just a matter of taking the time to print your paystubs out or to make digital copies and send them to your lender or mortgage broker.
4. Bank Statement or Tax Returns
There are various reasons that you might need to provide these documents to a lender who is considering giving you a home loan. You will need to be able to prove your income if you are self-employed, which means that your tax returns and bank statements will be your only proof of your income each year. You might also need to offer this evidence with regard to your income if you are paid seasonally or if you live off social security or off of some kind of trust-style account.
5. Explanation of Monthly Debts
If you have loans or revolving debt that you paid off recently that is not yet reflected on your credit report, you will need to be sure that you can explain why these debts might still be showing up in your credit file. There are various ways that you can prove that you have paid off a loan or a credit card, and you should take the time to have proof of this action for release to the lender that you are working with. Your credit file could take months to be updated, so you do not want to have to wait for this process to be finalized.
6. Credit Report
While your lender will pull your credit when they look at your file, you might want to order your once-a-year free annual credit report to check out any issues that need to be resolved before you apply for your mortgage. You can also use this document to discuss any challenges that the lender might see when they start looking at your overall credit and your loan request.
7. Application for First-Time-Buyer Programs
If you are applying for a first-time buyer program, you will need to be sure that you have filled out all the documentation that is required to apply for this kind of loan benefit. Your mortgage broker might be willing to help you with the details of this process, but you should plan to take care of this so that you are not holding up the rest of your mortgage process due to this part of the application.
If you are currently renting, you might be required to provide a landlord reference as part of your mortgage process. Make sure that you are able to secure landlord references and rental information from your landlord in case this is a stipulation of the mortgage process.
9. A List of Income Sources
If you have lots of different sources of income, you might need to list them all out so that they are easy to track down for your lender. They will often want to verify that you have the free income to be able to pay a mortgage, and they might also need proof that you are receiving part of your money from something other than a W2-based job.
10. Social Security Card
In some cases, you will be asked to provide a copy of your social security card during the loan process. This is another form of ID, and it helps prove that you will not relocate or move away after you have secured a loan and default on it. Your social security card might also be needed if there is an issue associating the right credit file with you. Credit file confusion is rare, but it can happen, and it can sometimes be tied to fraud that you might not have realized you were the victim of. A social security card will clear these discrepancies up for the lender.
Mortgage Must-Haves Should be Gathered Before you Apply
If you are worried that your mortgage might be held up by various difficulties to do with your documentation, you will need to plan in advance. Having all the necessary documentation on file for your mortgage process can help you to get through all the paperwork rapidly and without stress.