The Mortgage Documents Checklist, Explained

Most delays in a mortgage have nothing to do with the loan itself. They come from a missing page, an old statement or a document that raises a question nobody expected. Knowing what lenders ask for, and why, lets you gather it once and keep your file moving.

Every lender and loan program is a little different, so treat this as a starting list. Your loan originator or processor will tell you exactly what your file needs.

Proof of identity

Lenders must verify who you are. Expect to provide a valid government issued photo ID, such as a driver license or passport, for every borrower on the loan. Your Social Security number is also needed so the lender can pull your credit with your permission.

Proof of income

Income documents show that you can repay the loan and that your income is likely to continue.

• If you earn a salary or hourly pay: recent pay stubs and your W2 forms from the last couple of years.
• If you are self employed: your personal and business tax returns, and sometimes a profit and loss statement for the current year.
• Other income: award letters for Social Security, pension or disability income, and documents for alimony or child support if you want it counted.

Lenders may also verify your employment directly with your employer shortly before closing, so let your loan originator know about any job change right away.

Assets and bank statements

Lenders look at your bank and investment statements to confirm you have the funds for the down payment, the closing costs and any reserves the program requires. Provide complete statements, every page, even the pages that say nothing.

Large deposits that are not from your regular pay usually need an explanation and a paper trail. If a family member is giving you money toward the purchase, the lender will ask for a gift letter and proof of the transfer. Moving money between accounts during the process can create extra questions, so ask before you do it.

Debts and obligations

Your credit report lists most of your debts, but some documents fill in the picture. If you pay child support or alimony, the court order shows the amount. If you rent today, the lender may ask for proof of your rent payments. If you own other properties, expect mortgage statements, insurance declarations and, for rentals, leases.

Property documents

Once you are under contract, the file needs documents about the home itself. For a purchase, that starts with the signed purchase contract and any addenda. For a refinance, it includes your current mortgage statement and homeowners insurance policy. The lender orders the appraisal and the title work, and you will choose a homeowners insurance policy before closing.

Explanation letters

Underwriters sometimes ask for a short letter of explanation. Common topics are a gap in employment, a recent credit inquiry, a large deposit or a late payment from the past. Keep these letters brief, factual and signed. One or two clear sentences usually answer the question better than a long story.

Tips that keep your file moving

• Send complete documents. Partial statements and cropped photos are the most common reason a condition comes back.
• Use clear scans or PDFs. Every page should be readable, with your name and the account visible.
• Keep everything current. Statements and pay stubs expire as the file ages, so send the newest version when you are asked.
• Answer quickly. A request that waits a week can push your closing date.
• Do not change your finances. Avoid new credit, large purchases and job changes until after closing unless you have talked to your loan originator.

How a processor helps

A loan processor organizes your file, reviews each document against the program guidelines and follows up on anything missing before the lender’s underwriter sees it. Good processing turns a long list of requests into a short, clear one.

Have a question about your own documents? Book a free call with Laurie and get a checklist for your situation.