Documents Needed to Simplify the Mortgage Process

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Buying a home can be a very daunting task as best and involves a variety of steps and lots of documents. However, as daunting as it may seem, when you know beforehand what documents your mortgage company will require, and when, will make your new home purchase go much smoother. So it’s a good idea to begin getting organized as soon as possible.What You Will Need

Start by getting get all the following documents in order and organized so can begin filling in all the necessary documents in the process. Here’s a list of the paperwork you’ll need to buy a home, depending on what stage of the purchase process you’re at. In so doing you’ll be ahead of the game and ready to being the pre-approval or mortgage:

Financial Information

1. Tax Returns (at least one year, if self-employed or commission typically 2 years).

2. W2 forms for the last 2 years.

3. Pay Stubs (the last 2 years with year-to-date earnings).

4. Bank Statements (last 2-4 months).

5. Investment Account Statements.

6. Copy of your Passport, Driver’s License, or Photo ID.

7. Credit Reports (from all three agencies is always a good idea, this will also allow you to see if there are discrepancies needing to be addressed long before you submit your mortgage application).

Mortgage Application

An important note about filling in any of the paperwork

• Lenders require more paperwork from all borrowers.

• Never cross out, white out or alter any information provided on a document.

• Documents usually expire in 60 days, so always have access to the latest versions.

A Word about Bank, Investment and Tax Documents

•  Borrowers generally must supply bank and investment account statements for the last 30 days. An application for a jumbo loan could trigger a request for up to three months of statements.

•  In the past, only self-employed borrowers who went through full underwriting typically were required to present income tax returns. Today, almost everyone is expected to provide a recent tax return, including all the pages and schedules.

•  Borrowers also must sign IRS Form 4506-T, which allows the lender to get a transcript of the tax return from the IRS. This practice “has become an industry standard as fraud prevention,” says Brad Blackwell, national sales manager at Wells Fargo Home Mortgage.

•  Tax returns are usually scrutinized for any non-reimbursed employee business expenses, self-employment business losses and telltale signs of loan fraud, such as reported income that doesn’t match an employee’s W-2.

•  NEVER, but NEVER attempt to amend any prior year’s tax returns to show more income. It’s not only fraud, but there a definite consequences that make this crime…a definite No-No.

Once All is in Order

You’re to the point of submitting your mortgage application:


1. Secure a copy of the Uniform Residential Loan Application (form RD 410-4 or the Fannie Mae Form (No. 1003). This  expedite the process that determines whether you’re a good candidate for a loan and how much the mortgage lender will be willing to let you borrow. You can also use these forms to get pre-approved for loan even before you have found the right property you want and allow you to save time by not looking outside your given budget (as well as use the pre-approval letter to negotiate an offer).

You may feel intimidated by the forms if you’ve never filled one out, but not to worry: your lender and real estate sales agent would be more than willing to walk you through all the types of information you lender will be asking for; and for which you are already prepared to deliver. As well as give you a little insight to the overall process.

2. Sales Contract (signed and dated)

3. Any Addendum

Once the loan has been processed and approved you will be able to submit a copy of the approval (or pre-approval for an offer) to buy your home.

At that is left now, is to Close on your home:

1. Sales Contract (signed by Buyers and Sellers)

2. Title

3. Title Insurance

4. Copy of Your Driver’s License or Photo ID

5. Deed

6. HUD-1 Statement

7. Survey

8. Proof of Home Insurance (if required by lender)

9. Proof of Required Repairs

10. Checks

If you’ve never filled out a form like this before, you might feel a little intimidated. But don’t worry: You will work with your lender to complete the form. And this simple guide will walk you through all the types of information that you or your lender will need to provide for a mortgage application, so you know what to expect going in.

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