How to Get a Mortgage Loan? List of Documents Needed for Mortgage Loan, Loan Against Property Eligibility, LAP from Bank…
Are you looking forward to applying for a mortgage loan? If so, this is a step in the right direction when planning to own your dream home without going through a lot. After all, you will get the financial assistance you need to buy a house and safeguard your future and that of your family members.
But just as the case with any other type of loan, there are a few documents you need to have with you before filling and submitting the Loan Against Property application form. Here is the list of documents every mortgage applicant must supply before they can finally get a loan approved.
- Income Tax Returns
Mortgage lenders always examine your full financial information to determine whether there is stability and consistency. Actually, this is the only way to tell if you can afford the mortgage payment. In this case, you have to submit your income tax returns for the past 1-2 years. This will mean providing Form 4506-T as it gives them permission to get your tax transcript directly from the IRS.
- Proof of Income
Proof of income is also a must-have if the lender is to have an idea of your financial situation. Therefore, you can include pay stubs from the last 30 days with the employer’s signature depending on mortgage lender you rely on. Self-employed individuals will have to produce other proof of income documents including child support, direct deposits or 1099 forms.
- Bank Statement
Mortgage lenders will ask for Six to three months’ Salary Slip worth of bank statements to find out more about your savings balances, income, and source of your down payment. Aside from the bank statement, they may also request other investments assets such as life insurance.
- Gift Letters
Depending on the mortgage lender you rely on, you may be free to use gift funds to cover the down payment. If a friend or family members chips in to give you down payment money, they must sign a gift confirming you’ll not pay it back. Ensure the documents indicates the relationship together with the amount of money they offered.
- W-2s Forms
With mortgage loans, you need to submit W-2s forms from current and past employers for the last two years. If for any reason you do not have them, you can simply check with your employer. Alternatively, you can contact the IRS requesting for a copy of the documents you submitted while filing your tax returns.
- Credit History
Your credit history plays an important role when applying for a mortgage loan. But that’s not to say you should submit a copy of your credit reports. Instead, the mortgage lenders will request permission to check your credit history. However, you must be ready to provide a written statement in case you have negative items on your credit report.
Other notable documents you need to submit before completing the Loan Against Property application include your photo ID to prevent mortgage fraud together with proof of homeowners insurance. It is then that you can start filling the application form.