If you talk to enough people, one of the things you will find out about getting a mortgage is that it involves a ton of paperwork. You can literally just hear the trees crying out in pain from all the printing and copying that is done. If you are serious about buying a home or refinancing, you need to understand that there are no short cuts these days and to be prepared to open your life up to your loan officer.
It is also important to remember that the more the bank can verify, the less risky the mortgage. The less risky the mortgage, the cheaper the interest premium that you will pay for the mortgage. In other words, if you are a smart consumer, you want the bank to document as much as possible as it will likely result in a cheaper mortgage for you.
So what documents do you need on hand to get a mortgage?
Thirty Days Paystub(s): If you are an employee, you will need to show at least 30 days paystubs. If you are self-employed, lenders will want two years of personal and business tax returns.
Two Years W-2′s: You will also have to provide your most recent w-2′s for the past two years
Three Month’s Asset Statements: Lenders will want to see your checking, savings, and investment accounts. You will need to be able to provide ALL pages for these accounts covering the most recent three months.
Visa or Green Card: If you are not a US citizen, you have to be able to provide a valid Visa or green card.
Hazard Insurance: Contact information for the insurance provider for both your personal (HO-6 Policy for condo owners) and building.
HOA Contact: If you are part of a homeowner’s association (condos and subdivisions) you need to have a contact for the management company or which one of your neighbors is responsible for managing the HOA.
Letters of Explanation: Sometimes you might have to write a letter of explanation for credit inquiries or negative items on your credit report.
There are other items that might need to be provided but the list above is a pretty good start. It may sound like a pain in the ass, but put yourself in the shoes of the bank. Would you lend someone you didn’t know hundreds of thousands of dollars without conducting proper due diligence? Probably not. Remember, the banks tried cutting out all the paperwork with products like stated income loans and look where it got us.
