A New Home Loan - Everything and the Kitchen Sink - and Worth It

by Emily Kerr
Loan Page Columnist

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You've made the decision to buy a home, done preliminary research on lenders, and you're ready to sit down for your first appointment with the mortgage lender of your choice. Congratulations! Now, what information do you need to have with you for the appointment?

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When you meet with a mortgage lender, you will need all the financial paperwork you can get your hands on. The world of new home loans is a world of money, and lenders want to make certain you're going to be financially responsible with theirs.

Lenders verify all the information you give them when applying for your mortgage, but to streamline the process they require buyers to furnish information on employment, financial records, and other mortgages. Today's mortgage lender will require you to provide:
  • » W2 forms for the last two years (1099's if self-employed)
  • » Pay stubs for the last one to two months
  • » Federal tax returns for the last two years
  • » Business tax returns if you own your own business
  • » Information on retirement accounts or Social Security if applicable

Your mortgage lender will want to see proof of assets, including bank statements; statements on stocks, bonds, and mutual funds; savings accounts or retirement assets; and settlement papers for any properties sold recently.

Friends and family sometimes like to help out when you're applying for your first new home mortgage, but beware that lenders look closely at gift funds deposited into your account. They want to verify the gift giver's ability to make good, as well as your ability to pay without the gift.

In addition, home mortgage lenders are going to verify your credit report, and ask for explanations on late payments, charge-offs, judgments, and liens. If you have already made an offer on the property you're buying, you'll also need to furnish a copy of the purchase agreement.

It sounds like a lot, but it's worth it once you've signed the mortgage documents and step into your own house.

Sources:

Items You Need When Applying for a Loan

About the Author

Emily Kerr is a freelance writer with more than 425 articles published. She writes about everything from new home construction to new home loans and beyond.

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