Basic Documents You Need To Apply for a Home Loan
When applying for a home loan, you’re going to need to provide a variety of documents to allow the lender to properly assess your financial situation. While the exact documents will vary depending on the lender, there are a few forms that you can expect all loan providers to ask for. By acquiring these forms in advance, you can speed up the application process and increase your chances of securing the home of your dreams. Discover the basic documents that you need to apply for a home loan below.
Pay Stubs
Home loan lenders need to know your monthly income to determine if you will be able to realistically pay off your loan payment on time. As such, they will ask you to provide pay stubs from the past 30 days to get a feel for your current earnings. To ensure that the pay stubs are legitimate, the lender may also require them to be signed by your employer. If you are self-employed, you may need to provide your proof of income through 1099 forms, direct deposits, or other means.
Bank Statements
Additional basic documents that you need to apply for a home loan are bank statements.To assess your risk profile, a lender will also likely ask for your bank statements from the last two to three months. This will help them determine the source of your down payment—down payments that appear in an account overnight are a red flag to lenders—and verify your savings balances. Such statements also serve to validate your reported income.
Tax Returns
When applying for a mortgage, lenders will ask you to provide income tax returns from the past two to three years. Such documents will help verify that your reported annual income and deductions on your applications are accurate. Any large fluctuations in your tax returns regarding your annual income may serve as a red flag to lenders. In addition to tax returns, you may also need to sign a Form 4506-T. By signing the form, you will allow the lender to request a copy of your tax returns directly from the IRS.
W2 or I-9 Forms
Lenders may request W2 or I-9 forms. While it seems excessive, it’s essential for lenders to ensure that borrowers have a large enough income to make their monthly payments before loaning them a significant amount of money. As such, lenders will ask for your W-2s from your current and former employers from the past two years. To receive a copy of your W-2s, contact your employer or ask the IRS to submit a copy with your tax returns. If there is a gap in your employment from the past two years, you may need to provide your lender with a written explanation as to why.
For a private lender in Nevada to provide you with a favorable home loan, our lenders at Streamline Mortgage can help. To learn about our wide range of loan options, flexible terms, and incredible rates, contact us today!