By: Jerika P – i-Lead Realty Social Media Manager
When you apply for a mortgage, lenders will ask for supporting documents. Depending on your situation, you may need specific documents for a home loan. Here are seven mortgage documents you might need when applying for a home loan.
1. Tax returns
Lenders typically require tax returns from the past one to two years. You’ll probably be required to sign Form 4506-T, which authorizes the lender to ask the IRS for a copy of your tax returns. This is done to ensure that your stated wages and your annual income are accurate.
2. Pay stubs, W-2s or other proof of income
You may be required to provide 1099 forms or other documentation to prove that you are self-employed or have several sources of income.
3. Bank statements and other assets
Mortgage lenders may inspect your bank statements and other assets to evaluate your risk. This can contain both your savings and insurance policies, such as life insurance. Lenders generally request these documents to confirm that you have many months’ worth of mortgage payments set aside.
4. Credit history
Lenders frequently request your credit report to determine whether you are creditworthy enough to purchase a home.
5. Gift letters
You must prove that any funds from friends or family are gifts rather than loans if they are used to acquire a home. Both their link to you and the gift’s value should be noted in this documentation.
6. Photo ID
You’ll most likely have to present a photo ID, such as a driver’s license. This is merely to demonstrate that you are who you say you are.
7. Renting history
If you don’t have a long credit history, it’s extremely vital to consider your rental history. Lenders may require a year’s worth of canceled rent checks. They will ask for proof that you can make timely payments.
We know gathering and organizing all these documents can be intimidating, that’s why we always recommend finding a real estate professional. They will be able to ensure you have all the required documents so you dont have to stress about it. If you are searching for a Real Estate Professional or would like to learn more, you can contact us here.
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