What items are needed to get a mortgage?

So you’re thinking about buying a home or maybe just curious about the process? Awesome! Today, we want to go over something important that can help you get through the mortgage process smoothly. We recently spoke with Matt Morrell from JMJ Financial, and he shared a list of items you’ll need when applying for a mortgage. Whether you’re a W2 earner, self-employed, or already own property, this info is money. Let’s dive in!

For the W2 Salary Wage Earner

If you’re working a steady job with a regular paycheck, here’s what you’ll need:

1. Paystubs covering the past 30 days: Lenders want to see that you’re consistently getting paid.
2. W2s for the past 2 years: This helps them verify your income and job history over time.
3. Bank statements covering the past 1-2 months: The main purpose of reviewing your bank statements is to verify the assets being used for down payment. 
4. Copy of your driver’s license: This is for identity verification.
5. Year-end paystubs if you’re hourly or on commission: This gives a fuller picture of your income, especially if it varies.

For the Self-Employed Borrower

Self-employed folks like us, the requirements are a bit different, but don’t worry, it’s manageable:

1. Paystubs for the past 30 days (if applicable): This is for those who pay themselves a salary through an S-Corp.
2. W2s for the past two years (if applicable): Again, for S-Corp salary setups.
3. Last 1-2 years of tax returns: Lenders want to see your business income and expenses.
4. Bank statements for the past 1-2 months: To check your cash flow and account health.
5. Copy of your driver’s license: Standard ID check.

Add’l Items Needed For Those Who Already Own Property

Owning property means more paperwork, but you’ve got this:

1. Mortgage statement and proof of insurance for each property: To show current debts and responsibilities.
2. Copy of the HOA statement (if applicable): For properties within a homeowners association.
3. Tax returns for the past 2 years: To verify your income and financial health.
4. Lease agreement (if owned for less than 12 months): If you’re renting out a property, they’ll need this to confirm rental income.

Why All This Paperwork?

We know it seems like a lot, but each document plays a crucial role. Lenders need a comprehensive view of your financial situation to make sure you can handle the mortgage. It’s all about ensuring you’re set up for success and not taking on more than you can manage. REMEMBER: Your mortgage professional will also need to run your credit to assess your “risk” which also plays a role in your final interest rate.

Need Help?

If you have any questions or need clarification on any of these items, don’t hesitate to reach out. We’re here to help make this process as smooth as possible for you. And again, we want to give a big shoutout to Matt Morrell at JMJ Financial for providing this helpful list!