A Mortgage Broker in Gaffney SC can get an idea of your chances of being approved by looking at your recent payment receipts, bank statements, W-2 forms and tax returns. Depending on your financial situation, these are seven mortgage documents you might need when applying for a mortgage loan. Mortgage lenders want to know the full story of your financial situation. You'll probably have to sign a Form 4506-T, which allows the Mortgage Broker in Gaffney SC to ask the IRS for a copy of your tax returns. Lenders generally want to see tax returns for one to two years.
This is to ensure that your annual income matches the income reported on paychecks and that there are no major fluctuations from year to year. Lenders may ask you to see your pay stubs for the last month or so. Their tax returns help them have a clear picture of their overall financial health, while paychecks help them evaluate their current income. You may need to show your lender proof of income using 1099 forms, direct deposits, or other means.
Your Social Security card is another form of identification that your lender may request. Add another verification of your identity and help match your Social Security number with your photo ID to confirm that you are the one receiving the loan. You'll also need to provide your Social Security number to perform a credit check. Your most recent pay stubs help verify your monthly income and show proof of employment. If you are being paid with a physical check, you must have the actual check, which can be copied and sent to the lender.
If you are paid by direct deposit, your company must have electronic copies of your checks. You can also request electronic copies from your bank. Bank statements are necessary for pre-approval because they help verify your income and show that you can afford the down payment. These statements can also reveal any warning signs, such as returned checks, insufficient funds, unstable income, payments to other bank accounts, and large deposits from unknown sources.
You'll likely be asked for checking and savings account numbers and account statements for each bank you've used over the past 1 or 2 months. Some tax documents, including the two most recent W-2 forms, are also among the documents needed for pre-approval of the mortgage. These documents are another way to verify your income and show how much was deducted for tax purposes. You may be asked to file W-2 forms for the last 2 years from your current and former employers within that time frame.
While you should keep a copy of your tax returns and W-2 forms, if you're currently missing one, you may be able to ask the IRS for tax transcripts and returns. If you used a tax preparer or tax software to file your taxes, they may also have copies. Checking and savings accounts aren't the only places people keep their money, and their work may not be their only source of income. Lenders want to see all of your income and assets and, therefore, they should also review your investment statements.
These types of accounts include your 401 (k), 403 (b), IRA, stocks, bonds, and mutual funds. If you're self-employed or a business owner, you'll also need to submit your tax documents and business returns for the past 1 or 2 years, depending on your lender's requirements. You'll also need to show your audited profit and loss statement for the year to date. If you can't get that statement, you'll need to submit an unaudited profit and loss statement from last year, along with your most recent 60-day business bank statements. Mortgage Basics: 5 Minute Reading The length of a mortgage's pre-approval depends on the lender, but it usually lasts between 60 and 90 days.
Learn more about how long a pre-approval of a mortgage can take. Rocket Mortgage, 1050 Woodward Ave. Debt statements include all of your outstanding debts. This includes student, personal and auto loans, credit cards, and any other outstanding debt you're currently paying off.
This is to get an idea of your debt-to-income ratio and helps you determine how much you can borrow. If you already own a home and are applying for a mortgage to purchase investment real estate or vacation property, you will need to provide recent mortgage statements for your current home. Pre-approval of non-compliant mortgages requires documents that aren't necessary for a traditional mortgage. Pre-approval of a mortgage is when a lender examines your financial situation to determine how much money you would be willing to borrow to buy a home.
Getting pre-approved for a mortgage is similar to going through the mortgage process, but with fewer steps. Lenders use your mortgage application to evaluate your ability to effectively repay the loan and effectively determine how risky it is to lend you money. If you receive money as a gift from a family member or friend for your down payment or mortgage, you'll need to submit a letter from that person verifying that the money is a donation and not a loan. Lenders will ask you for documentation for your mortgage application that shows, for example, how much money you earn and what your debts are.
