7 Documents You Need When Applying for a Home Loan

The seven documents you need to apply for a home loan are: 1) W2s 2) Pay stubs 3) Bank statements 4) Tax returns 5) Gift letter 6) Mortgage application 7) Home insurance policy.

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Applying for a Home Loan

When you’re ready to start shopping for a home, the first thing you’ll need to do is get pre-approved for a mortgage. A mortgage pre-approval is a thorough process wherein a lender will review your financial history and provide you with a letter stating how much they’re willing to lend you. In order to get pre-approved, you’ll need to have the following documents handy:

Mortgage Application

A mortgage application is a type of loan application that you would use when you are applying for a home loan. The mortgage application is used to provide the lender with information about your financial situation, including your income, debts, and assets. The lender will use this information to determine whether or not you are a good candidate for a home loan.

There are a few things that you should keep in mind when you are filling out a mortgage application. First, you will need to provide accurate information. Lying on a loan application is considered fraud, and it can result in serious penalties. Second, you should make sure that you include all of the required information. If you omit something, the lender may not be able to process your application.

Here is a list of the 7 documents that you will need when you are applying for a home loan:
1. Driver’s License or Passport: You will need to provide a copy of your driver’s license or passport as proof of identification.
2. Social Security Number: You will need to provide your social security number so that the lender can run a credit check.
3. Bank Statements: You will need to provide bank statements for the past two months in order to prove your income and assets.
4. Tax Returns: You may be required to provide tax returns for the past two years in order to prove your income and assets.
5. Pay Stubs: You will need to provide pay stubs for the past two months in order to prove your income.
6. Debt Statements: You will need to provide statements for all of your debts, including credit cards, student loans, and car loans.
7. Asset Statements: You will need to provide statements for all of your assets, including savings accounts, investment accounts, and real estate holdings

Employment History

Your employment history is one of the first things a lender will look at when considering you for a loan. They want to see that you have a stable work history and that your income is steady. To show this, you will need to provide your lender with documents that prove your employment and income.

The most common document used to verify employment is a W-2 form from your current or most recent job. This form will show your employer, your salary, and any taxes that were withheld from your paychecks. If you are self-employed, you will need to provide your lender with tax returns from the past two years. These returns will show your income and prove that you have a steady stream of income.

Other documents that may be required include pay stubs, letters from employers verifying your employment, and bank statements showing deposits from your employer. Your lender may also ask for proof of any other income sources, such as child support or alimony payments. Be prepared to provide these documents so that the loan process can move forward smoothly.

Bank Statements

At a minimum, you’ll need to provide your bank statements from the past couple of months. In some cases, your lender may require bank statements from the past six months.

Your bank statements will show your lender how much money is coming into your account each month, as well as any large or suspicious transactions. Lenders want to see that you have a stable income and don’t have any major red flags in your financial history.

Tax Returns

When you apply for a home loan, you will need to provide your lender with a copy of your tax returns from the past two years. Your lender will use your tax returns to verify your income and calculate your debt-to-income ratio.

Credit Report

A credit report is a record of your credit history that includes information about your credit cards, loans, and any other debt you have. This report is used by lenders to determine your creditworthiness and whether or not you’re a good candidate for a loan.

You can get a free copy of your credit report from each of the three major credit reporting agencies — Experian, TransUnion, and Equifax — once every 12 months. You can also access your credit score, which is a numerical representation of your creditworthiness, through these same agencies.

Homeowner’s Insurance

lender will want to see evidence that you have homeowner’s insurance in place. This protects them in case of damage to the property. You will need to provide a declarations page showing the effective dates of the policy, the amount of coverage, and the named insureds.

Home Appraisal

Part of the home loan application process is having your home appraised. This protects both you and your lender because it provides an independent estimate of the home’s value. The appraisal helps your lender determine how much money to lend you and also gives you an idea of what your home is worth in case you want to sell it in the future.

You will usually need to pay for the appraisal up front, although some lenders will include the cost in your loan. The appraiser will come to your home and look at things like the size, condition and location of your property. He or she will also compare your home to others that have recently sold in the area to get an estimate of its value.