Loan Application: The Documents Your Loan Officer Will Ask For

If you are a first-time homebuyer (or even if you’ve done this a few times), it can be easy to get bogged down in the requests for paperwork coming from your lender. Here are a few of the most common documents that loan officers need when processing and approving your mortgage application.

• Income Verification: This can be a W-2, 1099, or other IRS form that provides a record of your income. If you are self-employed, you can provide a copy of your business’ books that shows income, although expect to need a longer history as well as additional means to verify, such as invoice receipts.
• Taxes: Lenders typically ask for copies of your tax returns for the past two years. If you are self-employed or have experienced a change in job or income, they may want to see more.
• Assets: If you already own property, stocks, retirement accounts, or any other assets, these are important to include. Your lender will consider these when approving your loan.
• Debts:  It’s no use hiding debts from your lender since they will show up on your credit report. You should provide statements that show the current balance of all of your debts. For a loan application, here are the documents your loan officer will ask for, this includes existing mortgages, car loans, student loans, credit cards, or other debts.
• Identification: Of course, your lender will want to make sure that you are the actual person applying for the loan. Identity theft is a serious problem in the financial industry and a good lender will take necessary safeguards to protect your personal information and confirm your identity. One of these is to ask for a valid form of photo ID.
• Credit Score: Your lender will obtain this independently, but you will need to sign a form that authorizes them to do so. Your credit score provides a number (based on your current debts, payment history, and other factors) that lets the lender know how likely you are to pay the loan back. A higher number means that you are more credit-worthy.

For more information about loan applications and the documents your loan officer will ask for, contact Integrity Mortgage and Financial Inc.