Nearly everyone that comes to us for a mortgage or a refinance comments on the amount of paperwork they have to provide us with. We know, it is a lot. In order to apply for a mortgage or refinance, we need the following documents.
But, believe it or not, each document tells us something different about your ability to repay your loan. If you’ve worked with us in the past, you may know that ensuring a client’s ability to repay their loan is extremely important to us. We would never advise anyone to take on a loan that we didn’t believe they could feasibly repay. [bctt tweet=”Each document required to apply for a mortgage indicates your ability to repay.” username=”MTGSpecialists”]
Keep reading to find out why we require so many different documents when you apply for a mortgage or refinance.
Federal tax returns/W-2 forms
We ask you for the past 2 years of federal tax returns and W-2 forms to ensure you earn enough to make your monthly payments. The reason we need two years of these documents is to be confident that your income is stable. If the amount you make changes drastically each year, we may ask for an explanation or further documentation.
We require your paystubs for the past 30 days to show that you are still making enough to repay your loan.
Bank account/retirement/investment statements
Since we’ve already verified that you make enough to repay your mortgage, these statements allow us to make sure that you have enough money to cover the downpayment and closing costs without breaking the bank. We want to make sure you won’t have to drain your accounts, because emergencies do happen.
Copy of your driver’s license
This one is easy, so you may have guessed it already. We need a copy of your driver’s license to verify that you are who you say you are.
Hopefully now that we’ve explained why these documents are required to apply for a mortgage or refinance, it will make compiling them for us a littler easier. Everything that we ask you to provide is in your best interest, as we never want to hear of a past client defaulting on their loan.
Have questions about getting a mortgage or refinancing your current home? Feel free to give us a call at (402) 991-5153. We’d love to take the time to answer your questions!