Documents You Will Need

When you are prepared for the process of applying for a mortgage, you allow your mortgage professional to focus on the most important aspect of this transaction, getting you the best price and rate on your mortgage. Having these items together before your first meeting will save you and your mortgage professional the time of chasing these down later and make the entire process shorter.

Here is the short list, there is more detailed information about each item farther down the page.

• Tax Information - 2 years history is required.
  W-2's for employees.
  Complete Tax Returns for Self-Employed borrowers.
  
  
• Paystubs
  One month's paystubs are required.
  
  
  The financial institution will want to see a steady 2 year work history. If you have worked for the same employer, your tax information will suffice.
  
  If you have changed employer's during the past 2 years, the mortgage company will need to perform a VOE (verification of employment). Bring with you the phone numbers for the human resources office at each of your employer's during the last 2 years.

Asset Documentation

The lender is looking for proof that you have the reserves to make your payments should you suddenly lose your job and that you have the cash available in order to conduct the closing.

The items you will need depend upon whether or not you will be bringing cash to the closing.

• Reserves
  Depending on your loan program, you will need to show proof of anywhere from 1 to 6 month's of mortgage payments available as liquid assets. Ask your mortgage professional what the individual requirements of your program will be.
  
  This proof can be in the form of
  • Bank Statements (usually 2 months) or
  • 401k Statement
    Most lenders consider 70% of your 401k balance to be liquid assets.
    
    
• Cash for Closing
  The lender is looking for proof that this is your money and that it has been your money for at least the last 90 days. If you have had the money in the bank, then 3 months of bank statements will do the trick.
  
  If the money hasn't been in the bank, be ready to prove where it came from. This can range from deposit and withdrawal slips when you have transferred money between accounts to obtaining a gift letter from a relative who gave you the money.
  
  Should you be in the latter category, be upfront with your mortgage professional about this situation and it will save you time later by allowing them to determine the exact requirements and documentation you may need.
  

Proof of Insurance

The lender will need a copy of the page of your homeowner's policy showing the account number and the declarations.

This will be used to determine if the policy is paid up to date and the amount required for your escrow account, should you have one in addition to determining whether you qualify for the mortgage.

Taking cash out? The policy will need to be insuring your home for at least the amount of your new mortgage.

Don't worry about the additional insured portion of the policy for your mortgage holder. Your mortgage company will notify the agent of your new lender prior to the closing.

Legal Description of Property

You can bring a recent property tax bill or a copy of the survey done when you purchased your home.

This will be used for your title insurance and to determine if there are any amounts owing on your property tax.

If you are just purchasing your home, make sure to bring the name and number of the realtor with you or have them send these items to us.

There you go, that's what you will need in hand to apply for your mortgage. You're ready to go! Give me a call or email me so that we can get you a mortgage today!

Harry Smith email Harry@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-514-9000	Drew Smith email drew@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-703-7770
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Documents you will need for a Mortgage Application at Daily Interest.com