Applying for mortgage loans can be an involved process. However, if you know the requirements upfront, you can increase your odds for success. Here are items that you commonly need in order to be approved for a mortgage.
Proof of income. You need to prove to a lender how you earn money, whether it’s in the form of salary, wages or other income. Many lenders require W-2 forms as well as recent check stubs for proof.
In addition, if you’re an entrepreneur, you may be asked for further documentation, such as profit and loss statements or 1099 forms in order to be approved for home loans.
Tax returns. Along with providing paycheck stubs, be prepared to furnish tax returns for the past few years to show additional proof of income.
Bank statements. Lenders need to know how much cash is available before they approve mortgage loans, so they’ll probably ask for bank statements. These forms can help you prove that you have access to enough money to pay for a down payment and any closing costs.
Credit report. When applying for mortgage loans, your lender will need to check your credit. While the lender has relationships with credit reporting agencies, it’s important for you to check your own credit before you apply for any loans. That way, if you spot any mistakes on your report, you can take steps to correct them before the mortgage approval process begins.