Requirements vary bank to bank, but many require the following documents to get approved for a mortgage:
A pay stub showing the amount of income you have earned so far in the current year.
W-2s from the past two years.
K-1s from the past two years.
The name and phone number of your employer whom the bank will then contact to verify employment.
If you already own property, the bank will require you to provide a mortgage statement and property tax information for that property.
Bank statements and financial statements for your securities and retirement accounts.
A loan application from the bank.
If you own your own business you will have to provide your business returns from the prior two years and a profit and loss statement for the current year.
A form verifying your social security number.
If you are not a U.S. citizen you will have to provide your permanent resident card or your U.S. visa and foreign passport.
Finally, you may have to write a letter of explanation for any questions the bank has during its review process. For example, if there has been a recent ping on your credit report you are likely to have to explain the hit.
Getting approved for a home loan can be a very tiresome and grueling process. One of the challenges is you are likely to have to provide the same updated docs again and again as the mortgage company wants the most recent snapshot of your financial status. For example, if you get a pre-approval letter in July and request an updated pre-approval letter in September you will have to provide statements for August and September as the bank will need to confirm that everything is on track from the July pre-approval letter.
That being said, by planning ahead and getting the above documents ready ahead of time you will best position yourself for the easiest pre-approval process possible.
Need help buying or selling a home? Please give us a call at (415) 295-6370.