A mortgage is a responsibility that just about everyone on earth wants to take on. It means you’ve entered the realm of home ownership, and it’s the dream of many billions of people. Some have already accomplished their dreams, while others are working hard toward the goal. If you’re getting ready to apply for a mortgage, you’ll need certain documents to expedite the process. Here are the 7 documents you need to make applying for a mortgage easier.
1. Proof of income
Far and away, income is going to be critical in determining the terms of your mortgage. Make sure that you have proof of your income and any other income-related documents that show what you make per month. Your income will in some ways determine how much you’ll be paying a month and much more. Income is king!
2. Tax returns
Your lender may want to see your tax returns for the last several years so that they can verify what your financial situation has been up to applying for the mortgage. There may be forms you need to fill out, giving your lender permission to request your tax returns, or you can obtain them yourself for your mortgage application.
Any kind of bank statements showing your assets and what you actually have in your bank right now will help your mortgage company expedite your application. You may be noticing a recurring theme here. They want to see a complete overview of your income, assets, and financial situation. A complete picture helps them more easily proceed with the application and approve it. If you’re in good shape on all counts, things are looking great so far.
4. Photo ID
In a day and age where people risk having their identities stolen during complex technological transfers and online activity, it’s natural that your mortgage broker will want to see your photo identification. It’s not a document exactly, but it’s an important part of your overall identity, and your lender will want to make sure that your photo ID checks out.
5. Rental documents
If you’re not already a homeowner, your mortgage application will likely need to be accompanied by documentation from a landlord showing that you’ve paid your rent on time for a full year. Don’t panic if you were ever late. That alone won’t mean you won’t be approved, but it might influence the decision if there are other negative things on your record. Your financial situation will matter most, including the next documentation you need.
6. Credit history
Your mortgage broker is likely to look up your credit history if you don’t provide the document, but if you have a favorable credit history, why not proudly display it? Sometimes they will ask that you show some documentation of your credit history. If you already have these documents, these might need to be included in the application. To get things like Brisbane packages, you usually need a credit history to review.
7. Employment history
Documentation of your employment history is important to some mortgage application. Why? Well, your employment is what is going to pay your mortgage, and lenders and other agencies want to make sure that they’re lending to someone who is consistently employed and reliable. They don’t want a scattered employment history (unless there’s a reasonable and understandable explanation). If you’ve got records of your employment or even references attesting to your reliability as an employee, this can sometimes reflect favorably on your application with an agency.
Applying for a mortgage can be an orderly, non-stressful experience if you know what documents you need ahead of time. Not every application will require every single one of these documents, so make sure that you request a full checklist of the type of documents you need for your application. Leaving anything out of the mix can delay your application and keep you out of your dream home for longer. If you already know what type of documents you need for your application, the sooner that you get them the better. It makes a good impression to be orderly, calm, and prepared before applying for a mortgage and going in for any type of interview. Put your best foot forward.