Lender Checklist: What You Need for a Mortgage
- W-2 Forms - or, if you are self-employed, you will need to provide copies of business tax return forms- for the last 2-3 years for every person included in the loan.
- Copies of at least one pay stub for each person signing the loan.
- Account numbers associated with all of your credit cards and the amounts of any outstanding balances.
- Copies of 2-4 months of bank or credit union statements for both checking and savings accounts.
- Lender, loan number and amount owed on other installment loans, such as student loans and car loans.
- Addresses where you've lived for the last five to seven years, with the names of landlords if applicable.
- Copies of brokerage account statements for 2-4 months, as well as a list of any other major assets of value-such as a boat, RV or stocks and bonds not held in a brokerage account.
- Copies of your most recent 401 (k), or other retirement account statement.
- Documentation to verify additional income, such as child support or a pension.
- Copies of personal tax forms for the last 2-3 years.
10 Questions to Ask Your Lender
- What are the most popular mortgages you offer? Why are they so popular?
- Given my financial circumstances, which type of mortgage do suggest for me? Why?
- Are your rates, terms, fees and closing costs negotiable?
- Will I have to buy private mortgage insurance? If so, how much will it cost and how long will it be required? (Note: Private mortgage insurance can be required if your down payment is less than 20%. However, many lenders will allow you to discontinue PMI when you've acquired a certain amount of equity by paying down the loan).
- Who will service the loan--your institution or another company?
- What are your escrow requirements?
- How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it becomes possible during this period?
- How long will the loan approval process take, and how long will it take to close the loan?
- Are the underwriters who will be approving my mortgage loan in-house, or are they outsourced? (Note: The approval process is generally faster and more efficient if underwriters are in-house as opposed to several states away).
- Are there any charges or penalties for prepaying the loan?