Tackling the Mortgage Process
If you’ve been through the home buying process or the process of refinancing your home, you’ve experienced the mortgage lender asking for everything except a tube of blood. Since the housing market crash in 2008, the government has taken over mortgage banks and made the process stricter and very tedious. A part of this process requires the mortgage banker to verify and thoroughly review almost all of your personal information such as income, assets, and debt. Here’s a list of the documents that are typically requested during your approval process. Having these documents ready upfront will ensure a smooth process and keep you from wanting to give up on the process.
- Most recent two years W-2 statements
- Most recent two years tax returns
- Most recent two months bank statements
- Most recent two months of income proof (paystubs, direct deposit statement, social security letter)
- Explanation of any large cash deposits shown on your bank statements
- Explanation of any overdraft charges on your bank statements
- Statement from student loan lender showing monthly payment or proof of deferment
- Proof/receipts of any recent payments for delinquent accounts on credit report
- Letter for any gifts towards down payment
Note: The required documents above will vary from lender to lender.
You can easily feel overwhelmed by the demand and requests for more documents during the home buying process. However, if you use this list and gather documents proactively you will save yourself time and stress. For those of you that have already experienced what could be a headache, leave a comment to motivate those who are looking forward to the process.