Ready to Buy a Home? Start with this Mortgage Document Guide

So, you're interested in purchasing a new home -how exciting. Before the congratulations roll in, there’s one important step first: getting approved for a mortgage. At North Shore Bank, your lender will help guide you through the process, but it’s helpful to know what to expect ahead of time.

Mortgage approval is a big deal. From income and assets to rent payments and more, today’s lenders are required to review documentation that reflects many areas of your financial life. Being prepared can make the process smoother and less stressful.

Employment History

Be prepared to provide:

• Names and addresses of employes for the last two years
• Your Social Security number
• Your most recent full month’s pay stub showing year-to-date earnings

Tax Documents

Include all pages and schedules from the past two years of the following forms

• W-2s

Those who are self-employed

• 1040 federal tax returns
• Partnership 1065 federal tax returns (if applicable)
• Corporation 1120 or 1120S federal tax returns (if applicable)

Financial Statements: Deposits and Loans

You’ll likely need:

• The most recent two months of statements for checking, savings, 401(k), money markets, and similar assets
• Documentation for any recent large deposits, including a gift letter from the donor confirming the funds are a gift and not a loan.
• The most recent statement for any current mortgages (if applicable)

Special Situations

If any of the following apply to you, additional documentation may be required:

• Bankruptcy paperwork (petitions, discharge, schedules, and a letter of explanation)
• Divorce documents (final judgment and marital settlement agreement)
• Judgments or liens against your assets
• Child support history showing no arrearage
• Letter of explanation for late payments and recent credit inquiries
• A current profit-and-loss statement if you are self-employed and or own a business

One Important Tip

When meeting with your financial institution, be sure to bring complete versions of every document. That means every sign page, even the blank ones.

If you have any questions before meeting with your lender or throughout the entire home-buying process, don’t hesitate to call for clarification. Your lender is there to help, and asking questions early can save time and stress later on.