Mortgage 101: Which Documents Do I Need?

Mortgage paper

Now that you are certain that you want to apply for a home loan, you are probably done looking at potential homes you could buy, but are you ready for the paperwork? You need to provide certain documents to prove to lenders that you are financially capable of taking on a mortgage in Utah.

Below are some documents you need to prepare when applying for a mortgage.

Proof of Income

In general, these documents include your recent pay stubs, as well as tax forms and returns such as 1099s and W-2s from the last two years at least. You might also have to prepare the names and contact information of your employers for the last two years.

Some lenders might also require you to present paperwork to account for disability and Social Security payments, alimony child support, dividends, pension income, overtime, bonuses, and other sources of income if applicable.

Proof of Financial Assets

You will need to provide paperwork pertaining to your assets such as statements and titles from bank accounts, bonds, stocks, CDs, mutual funds, retirement accounts, and vehicles, as well as other real estate properties.

Your lender would evaluate these to verify that you’re financially capable of covering the down payment, have sufficient cash reserves, and could comfortably afford the monthly mortgage payments, explains a loan officer in Utah.

Your Credit Details

At this point, you should already know your credit score and history. Your lender would review these to see if you could be trusted to not default on your mortgage and check your creditworthiness.

Do not Forget about the Basics

Keep in mind that you also have to prove your personal identifying information such as contact details, Social Security number, and if applicable all the addresses for homes you lived in the last two years.

Gathering these documents might seem tedious, but they are among the most effective ways that lenders could size you up.

You could help speed up the entire process by sending all the necessary paperwork on time. Take note that paperwork requirements vary from lender to lender so make sure to ask yours to ensure that you could prepare them in advance.