Paperwork is a huge part of the mortgage process, so the better prepared you are - the smoother applying for your mortgage loan can be.
There are three categories of documents your lender may request: income, expenses, and assets. Knowing what to expect can help you gather your paperwork and turn it in with ease.
Mortgage lenders typically verify your income in two different ways. First, they’ll want to see your most recent Form W2 or Form 1099 (if you are self-employed), and they may also ask you to provide recent tax returns.
Some lenders may accept signed copies of your tax returns; however, many also use the IRS income tax verification process to ensure the forms you provide are the same as the forms filed with the IRS.
In addition to tax information, be prepared to send in at least a month’s worth of pay stubs to your potential mortgage lender.
Along with income verification, your lender may request verification of your expenses to get a better idea of your debt-to-income ratio. Providing them a copy of your credit report is a great way to show previous debts and other financial responsibilities on your plate.
Along with debts, a lender will generally ask for proof of previous rent or mortgage payments. You can provide a copy of the checks used to pay your rent; however, some lenders may ask you to sign a form allowing them to verify your rent independently, without you having to send in documents.
Lenders also ask for borrowers to send verification of assets owned. This may include but is not limited to: stock portfolios, IRA accounts, or other liquid assets.
Although this list isn’t completely comprehensive of all documents needed, it’s a great place to start when preparing for mortgage loan approval.
I'm John Mahan, Sales Associate with William Raveis Real Estate, Harwich Port Office.
Throughout his childhood, John Mahan spent summers on Cape Cod at his parents’ home in Dennis Port. His intro to the Cape was, as he puts it, when his parents “carried me down the stairs at Sea Street Beach when I was a week old.” With a lifelong connection to Cape Cod, it seemed only natural for John and his wife, Mary, to move to Harwich – where they still reside – with their two young children in 1996.
Prior to moving to Cape Cod, John lived in the Worcester-Auburn area where he worked for Mass Electric for 10 years and was a member of the International Brotherhood of Utility Workers. When John and his family moved to the Cape, he worked at NSTAR for six years.
John began his career in real estate in 2002 when he joined Team Waystack Realty in Harwich Port. He has been a consistent top producing realtor in the Harwich area for the past 20 years. John’s approachable demeanor, combined with an integral understanding of the Cape Cod residential real estate market, have allowed him to build trusting, long-term relationships with his clients – both sellers and buyers.
