Mortgage Approval Documents: Know Before You Apply

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Most buyers think the hard part is finding the house. It's not. It's showing up unprepared and watching your deal stall in underwriting because one document was missing. 

Identity. Government-issued photo ID and Social Security number for every borrower on the loan. 

Income. 30 days of pay stubs and two years of W-2s. Overtime and bonuses get averaged over 24 months, so bring what supports the full picture. 

Tax Returns. Two years of federal returns, all schedules, page 2 signed. Unsigned returns get kicked back. Every time.  

Bank Statements. 60 days, all accounts, every page, even the blank ones. Large deposits or unusual transfers will need a written explanation.

Assets. Recent 401(k), IRA, and investment statements. Lenders want to see you can cover the down payment, closing costs, and still have reserves left over. 

Debt. Current statements for every recurring obligation. DTI up to 50% is possible, but 36% or below puts you in a much stronger position.

Gift Funds. A signed gift letter confirming the money is not a loan, including donor name, relationship, amount, and a no repayment statement.

Self-Employed. Two years of business returns, a year-to-date profit and loss statement, and 1099s. Bank statement programs exist if your tax returns don't reflect actual cash flow.

VA Borrowers. Certificate of Eligibility plus your DD-214. Active duty needs a Statement of Service. Surviving spouses may need a marriage license and death certificate.  

Special Circumstances. Divorce decree, bankruptcy discharge, or foreclosure documentation should be disclosed upfront, not discovered mid-underwriting.

Other Income. Social Security, pension, or VA disability requires award letters showing ongoing receipt.

***Educational purposes only. Not financial or legal advice. All loans subject to credit approval and applicable program guidelines.