Client Question: “I'm about to meet with my lender and want to be prepared, what documents will they need from me now for the pre-approval and for the loan in general?”
Dear What Documents Do I Need:
This is another good question. The lending portion of the home buying process can sometimes be the most stressful if you don't know what to expect. And although all loan situations are unique, here is a list of the documents you will most likely need to supply to your lender for both your pre-approval and your actual loan, along with a list of potential documents you might need.
Basic Commonly Needed Documentation
- W-2: two years worth of W-2's (if you have a conventional W-2 job)
- Pay Stubs: at least one month worth of pay stubs
- Bank and Asset Statements: last two months of bank and asset statements (make sure to provide ALL pages, even if some are blank)
- Tax Returns: the last 2 years tax returns and all schedules (but might need to provide more in certain circumstances like being self-employed, having a rental property, etc.)
- Identification: your driver's license, passport or state ID card
- Business Tax Returns: if you own a business or are self-employed you have to document all income you claim on your loan application and the docs you need to provide vary based on the business structure but might include profit and loss statements, business tax returns, etc.
- Source of Funds: if your submitted bank statements include any large or unusual deposits you will have to verify where you received the money from
- Proof of Reserves: most lenders want to see proof that you have enough reserves to cover at least 3 months of your mortgage payments
- Cancelled Rent Checks: if you don't own you will need to prove you pay your rent on time with a landlord verification form or 12 months of cancelled rent checks (giving your lender your landlord's contact information up front is super helpful too!)