When applying for a home loan, you will need to provide several documents to the lender to prove your financial situation. The exact forms you need depend on your situation, but here are some of the most common documents you might need when applying for a mortgage:
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Personal identification: This includes your drivers license, passport, or other documentation that proves your identity.
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Income verification: Lenders will request paperwork that proves how much money you make, such as tax returns, pay stubs, W-2s, or other proof of income.
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Assets and debts: You may need to provide bank statements and other assets, such as investment assets and insurance, as well as information about your debts, such as student loans or credit card balances.
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Credit reports: Lenders will want to check your credit history to assess your risk profile.
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Gift letters: If you are receiving gift funds, you may need to provide a gift letter and evidence of transfer.
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Photo ID: A clear copy of your drivers license is used for general identification purposes.
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Rental history: If you have been renting, you may need to provide proof of payments for the last 12 months, such as canceled checks, plus contact information for landlords for the last two years.
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Purchase and sale agreement: A signed copy of the purchase and sale agreement, which shows the purchase price and other details about the home youre buying.
Its a good idea to start prepping your financial documents before applying for a mortgage. Having these documents ready makes it easier for lenders to process your loan application, and the faster your application is processed, the sooner you can make an offer and potentially have it accepted by the seller.
