Regardless of which specific program you’re applying for, you will always need to provide a few critical documents when attempting to secure a mortgage loan. In order to get pre-qualified for any mortgage loan, you will need to present W2s, paystubs, tax returns, and bank statements to your lender.
These documents will allow your lender to ensure that the information you provided in your application was correct, and that you are truly qualified to take on a mortgage loan. There are quite a few reasons why the specific documents I mentioned earlier are so important.
Your tax returns, for example, provide invaluable insight into your personal circumstances. Seeing these returns will allow your lender to check whether you have any additional properties you didn’t claim when filing your mortgage application.
Tax returns also give lenders necessary information about your total household income and the number of dependents you have (if any).
Ultimately, your tax returns will help your lender to factor in any and all relevant financial information as they work to get you qualified.
Similarly, lenders need access to your W2 to check if you’ve got any unreimbursed business expenses, as this could impact your debt-to-income ratio. Deductions on one’s paystubs (such as alimony or child support) can also affect this ratio. Without pay stubs, your W2, and written proof of employment, your lender won’t be able to accurately assess your ability to qualify.
Finally, there’s the matter of bank statements. Bank statements allow the lender to verify whether you’ve got sufficient funds to close, whether the personal information you’ve provided is accurate, and whether you’ve got any undisclosed debt.
All of the documents we’ve covered today are essential the mortgage loan process. However, other documents may be required depending on what loan you apply for.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.