You may think that a lot has changed in the past few years from what it used to be with getting a mortgage when it comes to documentation. Well, the truth is, not much has changed – what has changed is the amount of proof you need to show and how hard mortgage approval underwriters will look at what you provide.
No matter whether you are a Vet trying to buy your third house with lowVArates using your VA loan eligibility or you are a first time home buyer tapping into some down payment assistance program be prepared to show a lot of documentation to get your mortgage.
Take for example your tax returns. In the past, before the mortgage crash of 2007-2008, you could get away with only having to provide 1-2 years of W-2′s and a paystub to prove your income. Today, however, in 2011 be prepared to show the 2-3 years of full tax returns including your W-2′s and at least a couple of pay stubs.
Here is a more thorough list of documents you’ll need to get a mortgage in 2011
- 2 most likely 3 months of bank statements
- At least 2 pay stubs covering the last 30 days of your current employment and showing year to date totals
- 401K, IRA, and Money Market quarterly statements
- If you have had a bankruptcy within the past 10 years, be prepared to show your bankruptcy paperwork. You may not have to if you have been out of bankruptcy for more than 3 years – but have the paperwork on hand just in case.
- Annual award letters from Social Security if you need to use what you make from it to qualify. You will also need to show several months of bank statements that reflect the regular deposits from Social Security.
- If you have had a divorce – even if it is several years old, be prepared to show divorce paperwork – including the settlement papers as well as custody papers. If you had some credit accounts split between you and your ex-spouse and they are responsible for paying some accounts still on your credit report – you may have to show proof that they are making the payments per the agreement.
- Annuity income or other forms of monthly interest income will need to be documented and be prepared to show the statements proving the income will last at least 3 years.
- Similarly to annuity income, if you are receiving any child support or alimony be prepared to show your legal documents to prove that you’ll be receiving that income for at least three years. In the event of child support you may have to provide birth certificates to prove your child’s (children’s) age(s).
- You will need to show proof of your identity – this is typically covered with a driver’s license and a social security card. You may also show a green card if you have one. Check with your loan officer about what forms of ID you may need if you have questions.
A good idea when it comes to starting into the home buying process is to gather this information before you speak to any loan officers. If the loan officer is doing their job correctly they will ask you a lot of questions about your personal financial situation. With your documents on hand you’ll save a lot of time accurately answering questions. You will also be prepared to provide a nice tidy packet of information if and when the loan officer asks for it.