Documents Needed to Apply for a Mortgage

Documents need to apply for a mortgage don’t vary that greatly from lender to lender. Below I’ve compiled a list of the most common items a lender will ask for when you’re applying for a mortgage.

We’re in the process of refinancing for the 6th time in our real estate investing journey… and since I’ve had buyers in the past express how overwhelming it is to apply for a mortgage I thought I’d share what to expect when it comes to the required documents a lender will ask for.

I’m sure you already know you can’t just roll in and get a mortgage without a little paperwork. But if you’re organized and prepared for what your lender will ask for, it’s a hell of a lot easier. 

You won’t need all of the below items to get pre-approved, but you will need them when you actually apply for a mortgage in order to get approved – so start gathering them now so you can move quickly when a home you love comes along! 

Here is what lenders will mostly ask to see:

Proof of identity: Gotta prove who you are! They’ll typically just ask for a copy of your driver’s license and will usually require you to send the front AND the back of your ID. 

Proof of employment or self employment: Ya know… so you can prove you can pay for the loan you’re applying for. They’ll likely verify your answers with your employer. And they’ll want to see a steady job history – they don’t like when a buyer jumps from job to job. 

Bank statements: Lenders will take a look at current assets to see what you could possibly utilize for a downpayment & closing costs. They’ll want the two most recent statements from each account you wish to show as assets. 

W-2 and/or tax returns: They’ll usually ask for the two most recent years.

Pay stubs: Lenders will likely want to see the two most recent months. They’lll pull what you call a debt-to-income (DTI) ratio to help determine what you can be approved to purchase.

Stock/bond and investment account statements: This includes things like IRAs, 401(k)s, CDs, brokerage accounts, etc. This is so they can take a good look at additional assets to your name.

Application: Obviously you’ll need to fill out your lender’s application. Ya know, so they know you want to apply for a loan.

Not all lenders ask for everything above and some might even require additional items. For example, if you’re receiving “gift” money from a family member, you’ll have to provide a letter stating that it is, indeed, a gift and not a loan and the relationship between you and the gift giver.

If it’s your first time buying a home, and you’re currently renting, the lender may require a year’s worth of canceled checks, or other proof that you’ve paid your rent each month. They may also ask for a letter from your landlord stating that you’ve paid your rent on time each month.

Every lender will want to pull a credit report to show your credit worthiness. The higher the score, the better interest rate you can get! If there are any blemishes on your credit report, they may require you to write a short statement that explains the negative item. Lenders typically look at one time issues differently than habitual delinquency. 

If you’re just starting your house hunting journey, this list is a great place to start collecting the required paperwork. As of the second quarter of 2023 our market here in Montgomery County, PA is still hot and things are still flying off the shelves so the faster you can move the better. 

And as always… I’d love to help you or anyone you know buy or sell a home so keep me in mind if you’re in Montgomery, Bucks or Berks Counties, I also have some great recommendations for lenders if you need one. Feel free to call or text me at 215-906-7047. Or just message me on social media