Notes on the variety of documents we collect to support your application.
Bank statements are used to verify several pieces of a mortgage application -- amount and source of funds to close, some types of income, and payment history for some types of obligations are the primary uses. Bank statements need to identify the financial institution, the borrower, and the account number. The most recent 30 day bank statement is the general requirement, although updates typically happen to show clearing of earnest money funds.
Paystubs are used primarily to document income -- number of hours and hourly wage, salary, commission, overtime, and other types of pay. Paystubs need to include the employer and employee names, dates, and both periodic and year to date income totals. The most recent 30 days worth of paystubs is generally what's needed.
W-2s / 1099s
These tax documents verify annual income amounts. We typically need the most recent 2 years W-2s and 1099s.
Like W-2s and 1099s, tax returns document annual incomes. For self employed borrowers, rental property, and certain other types of income tax returns also establish the qualifying income. Tax returns need to be signed and complete with all schedules. If your tax returns aren't yet filed, contact your loan originator for guidance before doing so. The most recent 2 years tax returns are generally required.
When a gift of funds is part of a borrower's assets, a gift letter is required. Ask your loan originator for the correct form and explanation of the gift supporting documents needed for your loan type.
Profit and Loss Statement
For self-employed borrowers, a profit and loss statement verifies year to date income. The P&L should be signed and dated, and is generally required for anyone with self-employment income.
Divorce Decree / Child Support Order
A divorce decree is usually required for anyone who has been married in the past. The decree will document if there are any relevant child support or alimony incomes or obligations, and will also establish responsible parties for any joint debts.
Bankruptcy documentation is typically needed to verify that certain debts have been discharged and are no longer outstanding as well as the exact date of discharge.
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