What Documents Do I Need For A Mortgage?
Documentation is necessary to process your mortgage, providing it in a timely manner will shorten the time it takes to close your loan.Documents are Key When Getting a Mortgage!
Lenders have to have a fully documented file in order to close your loan. This requirement can create a lot of stress if its not handled properly!
The number one thing clients get frustrated with asides from a deal falling apart, is paperwork! Clients hate to provide documentation more than once. We strive to make this process simple and streamlined so that doesn’t happen!
The number one complaint I’ve heard borrowers say over the years is “They should have asked me for these documents up front!” Thankfully these weren’t my clients, but its a common complaint.
Good originators and good loan processors ask for documents up front! Nevertheless there is always a time when we will need a document or two midway or even at the end of your loan process. Its the nature of the beast!
When you apply for a pre-approval our system automatically asks for a good portion of the documents you will need up front!
Below I breakdown the 4 stages to the mortgage documentation process. This way you will have a better idea of what to expect!
4 Steps to Mortgage Documentation Process
- After you apply for a pre-approval our system will automatically ask for docs, this a great time to give us the bulk of documents.
- Once you’re done with the app your mortgage loan originator will ask for any necessary docs to pre-approve you.
- Once you’re under contract or ready for underwriting for your refinance, the loan processor will ensure that they have everything they need for a full file for the underwriter. This could include docs that may be more minor in relevance to a pre-approval, but important still for a full file for underwriting.
- Once the underwriter has reviewed your file, they may ask for any documentation they need in order to have a full file for the lender. This process can happen once or twice.
We use technology to streamline the mortgage documentation process
Its getting easier and easier with technology to reduce the work on the borrowers part. More and more payroll companies allow us to automatically verify income. We can also electronically access your bank history if you so choose. This streamlines the process and creates less work on your part.
Additionally you can now send us pictures with your phone for any document that you need to provide. This ability has made it much easier to process mortgages in a way that’s less intensive for the both borrower and the mortgage company.
So What Documents Do I Need for a Mortgage?
This in not an all inclusive list. It depends on whether you are self employed or not. It also depends on what loan program you are using. This will be a good start though to prepare yourself for the mortgage documentation process.
Typically we need the following documents to begin processing your loan:
- For those working for an employer, 2 years of w-2’s suffice. We don’t need tax returns unless you own a business or are using rental income.
- If you’re self employed we need 2 years of your most recent tax returns, including 1099’s, and any K-1’s. We will also need a year to date profit and loss. If you have a corporation a balance sheet must be provided as well.
- Note on income docs** If you are self employed and using a bank statement mortgage program, we need 12 months of bank statements, no tax returns. Also if you have been self employed for 5 years or more with conventional financing you can use 1 year of tax returns if you so choose. Otherwise we average the past 2 years.
- 1 month of your most recent pay stubs if employed
- 2 months of your most recent bank statements (all pages), in some cases 1 month is acceptable.
- copy of your driver’s license
- If you are refinancing a copy of your current mortgage statement and insurance declarations page, if you own any other property we also need a copy of your mortgage statement and insurance declaration page. Feel free to provide your insurance agents name and we get request your declaration page.
- If you already have sales contract please forward it, if you have recently closed on a property we need a copy of the closing disclosure.
Overwhelmed with the documentation needs or have questions?
The documentation process can be lot! If you have questions we are here to help! Feel free to contact us directly. Is your current lender asking for things that you don’t think they need? Maybe we can help with that too. Our goal is to serve you!
