Mortgage Documents: Tips and Checklist for Homeowners

What Paperwork Do You Need for a Mortgage?

When you apply for a home loan, your lender will require you to provide certain financial documentation. Documents needed for a mortgage include forms showing your income, debt, and assets so mortgage lenders can evaluate your financial situation.  This guide will explain everything you’ll need to apply for a home loan.

Mortgage Document Checklist

Mortgage lenders require proof of financial details to determine if you’re in a position to pay back the loan. 

Here are some of the different types of documents you may need:

• Income and employment documents
• Asset and debt documents
• Credit history documents
• Identification documents

Income and Employment Documents

When you apply for a mortgage, we may request documents related to your employment and income, such as:

• W-2 forms and pay stubs. Be prepared to show W-2 forms for the past two years, as well as a few recent pay stubs.
• Personal income tax returns. Provide copies of your two most recent tax returns, especially if you're self-employed.
• Other sources of income. If you receive income from investments, rental properties, pensions, Social Security, or other sources, we'll ask for documentation about this income, too.
• Self-employment documents. When you're self-employed and getting a mortgage, you'll need to provide business tax returns, proof of business income, and proof of business activity.

Asset and Debt Documents

We also typically ask for documents that show your assets and other debt payments you may need to pay, in addition to your mortgage. Information about your debts helps us calculate an accurate debt-to-income ratio.

• Assets. We may ask for statements from your bank, investment, and retirement accounts.
• Gift letters. If you’re financing your home with money that’s been given to you as a gift, you'll need to document this with a gift letter that states who is giving you the money and confirms that this money is a gift you do not need to pay back. Learn more about mortgage gift letters.
• Debt documents. We'll ask you to document how much you owe on credit cards, student loans, auto loans, personal loans, and other kinds of debt to determine what you must already pay on a monthly basis. 

Credit History Documents

Your credit history provides important information to lenders about your past borrowing behavior. This goes beyond just a credit score. 

Credit bureaus collect all kinds of information, including details about the type of debts you have and the amount you borrowed. When we review details like how much you owe on credit cards relative to your credit line or whether you have ever made late payments. This provides important insight into how effective you are at managing debt responsibly. 

Identification Documents 

At the time of closing, you’ll need to provide the settlement agent with a valid, government-issued identification, such as a driver’s license, passport, or Social Security card. It's important that the name on your ID matches the name on your mortgage documents.  

Tips for Submitting Mortgage Documents

The more responsive you are to your mortgage lender in providing documents, the faster the loan approval process goes. That's why organization and thoroughness are important during the mortgage application process.

• Gather documents. Collect digital and print copies of the forms your lender is likely to ask for, including pay stubs and tax returns. 
• Organize files. Create a system for organizing your paperwork. You could have different folders or use a standard naming convention for digital files.
• Submit every page. Sending partial documents could delay the process. Make sure all pages of statements and tax returns are included when saving PDF copies or printing paper forms.
• Keep copies. You should never send your only copy of something. If it gets lost, it will take more time to find a replacement.
• Be responsive and transparent. Submit forms to your lender as soon as they are requested. Don't hide information, such as details about debt accounts. Your lender can only find you the right loan offers if you’re upfront about your finances. 

Documents Needed for a Mortgage Application FAQs

If you still need to know more, here are the answers to some frequently asked questions about documents needed for a mortgage application.

What Do You Do with Mortgage Loan Documents? 

We use these documents to verify that the financial information on your mortgage application is accurate. Your application isn't typically considered complete until we’ve received all the necessary documents and information to evaluate before making a decision.

What Paperwork Is Needed for a Refinance? 

When you refinance a mortgage, you need many of the same financial documents required when applying for your initial home loan, including your credit report, pay stubs or other proof of income, tax returns, and debt and asset statements. You will also need to provide information on the home you're refinancing including your property deed and homeowners insurance policy.

What Documents Do I Need for a Streamline Refinance?

Both an FHA streamline refinance and a VA streamline refinance are easier and faster to qualify for than typical refinance loans, but you will still need to submit certain documents. This includes a recent mortgage statement, a current mortgage note, and a homeowners insurance policy. You will also need to provide some general financial documents, including recent bank statements.

What Mortgage Documents Will You Send Me?

During the mortgage application process, we’ll send you the initial disclosure package to review and complete. You’ll also receive a Closing Disclosure prior to closing. Some of the most important documents are your initial and final disclosures, which contain key information about the mortgage we may offer you.

Final Thoughts: Mortgage Loan Documents

Getting approved for a mortgage loan can take time, but gathering your documents in advice can make the process simpler and less stressful. Start collecting your financial paperwork now and reach out to Freedom Mortgage to begin the process of getting prequalified today.