Information Needed for a Loan Approval
Having the correct information together when applying for a mortgage loan can speed the approval process and eliminate your frustration.
When applying for a loan potential homebuyers should compile the following personal and financial information for applicant and co-applicant alike. A co-applicant is not necessary to obtain a mortgage however the combined income from two applicants allows for a higher qualifying amount and therefore the purchase of a larger or nicer home. Some of the information listed below may not be applicable to your specific situation.
- Social Security card and photo identification.
- Employment information for all jobs you have held in the past 2-years. This information will include the employer’s name, address, telephone number as well as your salary and length of employment with the employer. If you are disabled or retired this information is not necessary.
- Pay stubs for most recent 30-days for all jobs. If you are collecting Social Security or a pension you will need to provide a copy of your award letter or proof of your monthly receipt.
- Tax returns and W-2’s. Generally the two most recent years will be sufficient however self-employed applicants should bring their three most recent tax returns.
- The addresses where you have lived for the past two years as well as the name, address, and telephone number of your landlord.
- Information about checking and savings accounts. You will generally be asked to provide all pages of the three most recent month’s statements for all accounts.
- A list of assets, such as stocks and bonds, real estate and the current value of cash value life insurance policies and/or retirement programs. You will be asked to provide a copy of your periodic statements and in the event you have sold a home in the previous two years you will be asked for a copy of the HUD-1 Settlement Statement.
- Information about existing debts such as creditor name, account number, minimum monthly payment, and account balance.
- Complete copy of all bankruptcy schedules with discharge if they have occurred in the past 10 years.
- Final filed divorce decree with all modifications and orders for support.
These are the most commonly requested items however your lender may require additional documentation in special circumstances. Gathering the above information can be a process. If you are unable to locate some specific information that is outlined above then your real estate professional should be able to assist you in obtaining transcripts from the IRS, copies of bankruptcy filings, and other required documentation.