Purchasing a new construction home is an exciting milestone, but for first-time homebuyers, the process can seem overwhelming at first. However, with the proper guidance and some preparation, buying your first home can be a breeze! Before you begin your mortgage application, take a look at our mortgage document checklist below. By gathering these documents ahead of time, you can ensure a smooth and stress-free application process!
Your lender may request the following documents after you submit your application to prove your identity and to give them a better idea of your finances.
- A copy of your government-issued ID
- Two months of your most recent bank statements
- Two of your most recent pay stubs
- Two of your most recent W-2s and/or tax returns
If applicable:
- A copy of your previous home sale documents
- A copy of your profit and loss statements
- A copy of your divorce decree
- A copy of any bankruptcy documents
- A copy of your retirement and investment accounts, if you plan to use these funds
- A gift letter, if you plan to use gifted funds
- A VA Certificate of Eligibility
Please note that this list is intended to be a guide. Everyone’s situation is unique and your lender may ask you to provide additional documentation that is not listed above.
Proof of Income
When you apply for a mortgage, one of the first things your lender may verify is your income. They are looking for stability and consistency in your income so they can calculate how much you can comfortably afford each month.
Do You Need a W-2 for a Mortgage? If your employer provides W-2s, your lender may ask for the last two years from each applicant. If you don’t have them on hand, check with your employer. If you are self-employed, you may need to provide additional documents, such as profit and loss statements and balance sheets.
How Many Months of Pay Stubs Do I Need for a Mortgage? Your lender may ask for your most recent pay stubs from the last 30 days. If you receive other types of payments, such as overtime or commission, you may be asked to provide additional documentation.
What Tax Documents Do I Need for a Mortgage? Along with your W-2, your lender may also request your tax returns from the last two to three years to verify your income and the deductions you claimed. They may also use these documents to review your income consistency and job history.
Bank Statements
Your lender may review your bank statements to ensure you have sufficient funds to cover the down payment and closing costs. They may review your statements and may request additional documentation for any large deposits.
How Many Bank Statements Do You Need to Get a Mortgage? Your lender may ask for two to three months’ worth of bank statements to show your balance. You may receive these statements in the mail or can easily download them from your bank’s website.
Employment Verification
Your lenders may verify employment by contacting employers directly to verify your employment and salary. If you are self-employed, your lender may request a transcript of your tax returns through the Internal Revenue Service (IRS).
Credit Score
Your credit score plays a big role in determining your overall purchasing power when buying a home. While you don’t need to provide your lender with a copy of your credit report, you may be required to grant them permission to check it internally.
Property Information
When purchasing a new construction home, you may be asked to provide the property address and estimated value. Your lender may also require documentation such as building permits, construction plans, and inspections.
What Comes Next?
After you submit your mortgage application, your lender will have three business days to give you a Loan Estimate. This may be a detailed disclosure showing your eligible loan amount, the loan type, interest rate and all the estimated costs of your mortgage. Once you’re happy with the loan terms, your application will go through the underwriting process where your lender may verify every detail of your application. Be prepared to answer questions and provide additional documentation, if needed.
It is strongly recommended that you hold off on any major purchases or career changes while your mortgage application is in process. Even the slightest change to your credit score or your income could impact your qualification!
Applying for a mortgage loan may seem overwhelming, but by gathering these documents and preparing ahead of time, you can make the process smooth and stress-free! Keep in mind that the requirements may vary, so be sure to check with your lender for specific requirements. By being prepared and organized, you’ll be well on your way to financing your dream home!
