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Owning a Home

Home Loan Application Checklist

November 10, 2021

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One of the most tedious parts of home buying is gathering the right documentation, but prepping beforehand makes it that much easier.

The documents required for a mortgage application can be categorized by type: Proof of Employment/Income, Proof of Assets, and Credit & Residential History. These give potential lenders a glimpse into your situation so they see whether you’re a worthy bowerer or not. Here’s a comprehensive home loan application checklist to help you prepare our the lending process.

Employment/ Income

As you might have expected, income plays a significant role in a lender’s decision-making process. Multiple documents are needed to prove you can afford the payments.

Bank Statements. Lenders will ask for bank statements that cover the last 30-60 days, proving what is deposited and taken out of your account every month.

Retirement. Lenders like to see at least two months of retirement/pension, 401k and social security 1099 statements.

Pay Stubs. Lenders usually ask for pay stubs from the last 30 days to demonstrate how much you’re currently making or have made in the past.

Tax returns. Many lenders require at least two years of tax returns & W-2s to prove income stability. Check with your employer or the IRS if you don’t have these available.

Alternative Forms. Other sources of income like child support, social security, disability, etc. might need to be proven through direct deposit information instead of a pay stub.

Employment Letter. This letter confirms your hire date and employment status for extra assurance that you’re honest about what you do.

Employer Contact Information. A lender may request a contact list with the company names, addresses, former bosses, HR representatives, and contact information.

Assets

The lender will look at assets to see how much cash is available to you if something were to happen and you couldn’t pay for the mortgage. As proof of your assets, they’ll look for the following documents:

Bank Statements. Lenders will ask for bank statements that cover the last 30-60 days, proving what is deposited and taken out of your account every month.

Proof of Property. If you own another home/property, be prepared to provide proof of ownership.

Gift Letters. Written documentation that proves money given to you is a gift specifically to pay for your new home and not a loan.

See how much home you can afford by checking out our resources center:
  1. Discover your ideal monthly housing payment.
  2. Learn more about mortgage loans.
  3. Calculate what size of a mortgage you can afford.
Credit & Other Information

Credit History. A lender will want to make sure you’ve been consistent with your past payments in order to know that you are trustworthy and can take on the responsibility of another major monthly expense.

Credit Report. Lenders will pull your credit report to check your creditworthiness.

Residential/Renting History. This is helpful if you lack an extensive credit history and necessary if you’ve never owned a home.

Proof of Rent Payments. Lenders may require proof from your previous landlord that you are able to make on-time payments. To get this, you’ll need either printed or digital-physical statements from your housing office or landlord.

List of Previous Addresses. Be prepared to provide a list of all past addresses as well as the names of past landlords and their contact information.

By preparing these documents ahead of time, you’ll likely stress less and have a better experience than if you started the home-buying process empty-handed.

Get connected with someone on our Home Loan Hero team today to get started on your homebuying journey.


About the Author

Movement Bank is dedicated to producing quality content that informs and educates readers about healthy financial habits. On our blog you'll also find information about our products, services, and promotions that may help you on your financial journey. To browse and learn more, visit our blog directly at movementbank.com/blog.