Documentation Details for Mortgage Loans

documentation details for mortgage loans- 150x150When a borrower approaches the refinancing or loan application process, there is a required set of documents and disclosure statements which are necessary to activate the negotiation process with the lender or broker. This initial ‘package’ will include the Truth in Lending disclosure, the Good-Faith Estimate, and Credit Report disclosure. These permit the lender to acquire the background information about the borrower, such as employment records, credit history, banking activity, income and asset verification, and so on. Once these documents have been signed or provided, the loan process can move toward qualification and subsequent loan approval.

Documents Needed for Loan Approval Process

  • Application Fee – covering the cost of appraisal and credit report requests
  • Sales Contract of the home under negotiation, signed by both Seller and Buyer
  • Social Security Numbers for each loan applicant
  • Address listings of each applicant for the previous 2 years (including landlords)
  • Income earned from any employer for the previous 2 years (name and address)
  • Copies of each W-2 forms from each employer for the previous 2 years
  • Copies of the most recent pay-stubs, including year-to-date amounts
  • Account information on existing installment, auto, student, and mortgage loans, and credit accounts (name, address, acct. number, monthly payments, balances)
  • Account information on checking and savings accounts, stocks, and bonds (name, address, account numbers and balances, and three months of deposit statements)

If the borrower has filed for bankruptcy within the previous 7 years:

  • Copies of all documentation for petition and discharges, reason for filing, and any evidence in support of excellent credit behavior since the time of discharge

If the borrower is self-employed or is compensated by commission:

  • Federal Income tax returns, including each Schedule, for the previous 2 years, and a year-to-date profit and loss statement

If the borrower owns any additional real estate:

  • Property addresses and market value assessments
  • Mortgage obligations on all property (name, address, payments and balances)
  • Federal Income tax returns, including each Schedule, for the previous 2 years
  • Copies of all active leases and rental agreements

All of this paperwork can look overwhelming, but all of it is necessary for the mortgage loan approval process. Before meeting with a lender, be sure to make a checklist of the documents you need and include these in one folder to keep everything organized. If you have what you need at the beginning of the loan process, there will be less delay and stress! Be sure to also prepare a list of the top questions for lenders.


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