Once you have completed a mortgage application, the lender will provide you with a Loan Estimate within three business days. No matter how large a mortgage you want to borrow, whether it is $100,000 or $500,000, you will need to provide your lender several documents verifying your income and finances. The lender may not require verification documents prior to providing the Loan Estimate. However, you may want to gather documents that are typically requested. In general, most lenders will want to see copies of the following:
- Signed Federal tax returns for the last 2 years;
- W-2 statements for the last 2 years;
- Bank statements for the last 60 days;
- Pay stubs for the last 30 days.
Being prepared with supporting documents may help speed up the process.
If you are self-employed, you need to be able to provide documentation of your income, including business tax returns and an income and expense statement. If you are a renter, your lender may also want to see copies of your canceled rent checks for the last year.
If you plan to use a gift toward your down payment, your lender will want to see several documents, including a letter from the gift giver to you detailing the amount of the gift and that it is indeed a gift with no strings attached or repayment expected. Your lender may also want to see verification of where the funds came from (a bank statement from the gift giver, for example, showing the withdrawal of the gift amount), as well as verification that you received and deposited the gift amount.
After your Loan Estimate is provided, depending on your borrowing circumstances, your lender will let you know what information that will be required for your final mortgage approval and how to submit documents.