One very Important thing to remember during the Mortgage application process is that your mortgage lender will be closely monitoring any changes in your financial position. So, during the loan approval process, that is- through the purchase and closing of your new home, you must not make any substantial changes including credit card charges, credit payoffs, loan requests, cash purchases, or financial transaction that affect your financial position without getting your lender approval. Even if you can afford it, don’t make the mistake of buying a new vehicle, piece of furniture, or appliance for your future home. Best case scenario – this will delay closing and worst case break the deal. The lender will run your credit at 3 days before close as a general rule of thumb.
Every lender requires documents as part of the process of approving a mortgage loan. Here are documents you’re generally required to provide.
- W-2 Tax forms — or business tax returns if you’re self-employed — for the last two or three years for every person signing the loan.
- At least one pay stub for each person signing the loan.
- Account numbers of all your credit cards and the amounts for any outstanding balances.
- Two to four months of bank or credit union statements for both checking and savings accounts.
- Lender, loan number, and amount owed on installment loans, such as student loans and car loans.
- Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
- Brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
- Your most recent 401(k) or other retirement account statement.
- Documentation to verify additional income, such as child support or a pension.
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