Mortgage Application Checklist

One of the most tedious parts of home buying is gathering the right documentation, but prepping beforehand makes it that much easier.

The documents required for a mortgage application can be categorized by type: Proof of Income/Employment, Proof of Assets, Credit History, and Residential History. These give potential lenders a glimpse into your situation so they see whether you’re a worthy borrower or not. Here’s a comprehensive mortgage application checklist to help you prepare for the lending process.

Employment/Income

As you might have expected, income plays a significant role in a lender’s decision-making process. Multiple documents are needed to prove you can afford the payments.

Tax documents. Many lenders require at least two years of W-2s to prove income stability. Check with your employer or the IRS if you don’t have these available. If self-employed, you may need the last two years of both personal and business federal tax returns (with schedules) and a current profit and loss statement if your taxes are on extension.

Pay Stubs. Lenders usually ask for pay stubs from the last 30 days to demonstrate how much you’re currently making or have made in the past.

Alternative Forms. Other sources of income like child support, social security, pensions, disability, etc. might need to be proven through direct deposit information, social security award letters, 1099’s or federal tax returns. 

Employment Letter. If you are starting a new job, this letter confirms your hire date and employment status.

Assets

As proof of your assets, they’ll look for the following documents:

Bank Statements. Lenders will ask for bank statements that cover the last 60 days evidencing sufficient funds to close and reserves.

Gift Letters. Written documentation that proves money given to you is a gift specifically to pay for your new home and not a loan.

Credit & Other Information

Credit History. A lender will want to make sure you've been consistent with your past payments in order to know that you are trustworthy and can take on the responsibility of another major monthly expense.

Credit Report. Lenders will pull your credit report to check your credit worthiness.

Residential Renting History. This is helpful if you lack an extensive credit history and necessary if you’ve never owned a home.

Proof of Rent Payments. Lenders may require proof that your rent has been paid on time. To get this, you’ll need bank statements or cancelled rent checks for the last 12 months or the bank will send a Verification of Rent to your landlord.

List of Previous Addresses. Be prepared to provide a list of past addresses, usually two years’ worth, as well as names of past landlords and their contact information.

By preparing these documents ahead of time, you’ll likely stress less and have a better experience than if you started the home-buying process empty-handed.

Beneficial Resources

CSB offers a variety of resources to help you with your mortgage journey. To get started check out Clinton Savings Mortgage Center - Resource Center (mortgagewebcenter.com). Here you’ll find payment calculators, a glossary of loan terms, closing cost information and much more! Our mortgage originators are also always available to answer any questions and walk you through the process. Contact us at 978-365-3700, or if you’re ready, apply online at clintonsavings.com!