What Documents Do You Need for a Mortgage Application?

Buying a home is exciting, but with all the paperwork involved, it can also feel overwhelming. Knowing what to expect can help ease some of the purchase jitters and better prepare you for what's ahead. That's why we're here–to walk you through the documents you'll need to apply for a mortgage, and offer tips to stay organized right from the start.

Why Getting Organized Early Matters

Choosing a home you love is just one part of the mortgage process–you'll also need to prove you're financially ready for the responsibility of homeownership. Gathering documents and financial records before you apply for a mortgage can help you:

• Avoid delays or missing out on the perfect home
• Quickly find the best loan for your unique situation
• Confidently move through the process

Going into any situation prepared, including applying for a home loan, can make the process feel easier and help calm your nerves.

"What Documents Do I Need for a Mortgage Application?"

No matter the type of mortgage you're applying for, many lenders require similar documentation. Here are the common documents needed for a mortgage application:

Identification and Proof of Income

Expect to show identification, such as a driver's license or passport, as well as recent pay stubs. It's also a good idea to gather your W-2s from the past two years. Self-employed? You might need to submit your full tax returns and profit/loss statements to show you're financially stable.

Bank Statements and Asset Documentation

Lenders are looking for evidence that you have enough saved to not only cover your down payment but also your closing costs and a few months of mortgage payments. Therefore, documents required for a mortgage application include bank statements from the last two or three months and any other asset records, such as investment accounts.

Credit History and Debt Disclosures

Because your credit plays a role in approval, mortgage loan application documents typically include a consent form to authorize a credit check. Be prepared to explain any unusual or large transactions and disclose your current debts, such as car payments and credit cards.

Employment Verification and Rental History

Most people don't live off of trusts or inheritance, which means you'll need to show proof that you're employed. To save time, have your employer's contact details and contracts or recent employment letters ready to go. If you have limited credit, it's also a good idea to pull any documentation you have that shows your rental history, helping establish your ability to make on-time monthly payments.

Additional Documentation for Special Loans

Some loans require additional documentation. Have all of your financial records in one place so you can quickly pull what you need, such as your Certificate of Eligibility for a VA loan or proof that the property you're looking to buy meets rural development requirements for a USDA loan.

Organizational Tips

• Connect with your lender as soon as possible. Doing so helps narrow down the types of loans you'd likely qualify for, so you can focus on gathering the documents needed to apply.
• Create a digital folder to store all your documents in one place. When the time comes, a digital folder can be easily shared with your lender.
• Label everything clearly. Use titles like "July Bank Statement" and "2024 W-2" to help you quickly find the specific records you're looking for.
• Don't panic if you're missing something. Our JustChoice Lending team is here to help you find financing solutions, not turn you away.

Helping You Prep and Apply

Whether you're a first-time buyer, a growing family, or navigating a unique financial situation, JustChoice Lending can help you find and apply for the home loan that best suits your needs, budget, and lifestyle. Connect with us for prep guidance or to get your application started!