Obtaining a mortgage requires more paperwork than it did in years ago. As Florida Direct Mortgage Lenders, to properly evaluate a mortgage applicant’s ability to repay, we must account for the homebuyer’s assets, debt-to-income ratio and credit history.The exact forms you need for a home loan depend on your situation. For example, someone who is self-employed will likely have to provide different forms than someone who is employed by a company.Although the exact forms might vary your approval odds by checking out your recent pay stubs, bank statements, W-2 forms and tax returns to be able to make a good assessment of the borrower. “These documents allow me to tell (borrowers) what they can and cannot do with a very high level of certainty,” he says.Below are some sample documentation ________________________________________1. Tax returnsAs Florida Direct Mortgage Lenders, we want to get the full story of your financial situation. You’ll probably need to sign a Form 4506-T, which allows us to request a copy of your tax returns from the IRS.Generally want to see one to two years’ worth of tax returns. This is to make sure your annual income is consistent with your reported earnings through pay stubs and there aren’t huge fluctuations from year to year.2. Pay stubs, W-2s or other proof of incomeAs Florida Direct Mortgage Lenders, we may ask to see your pay stubs from the past month or so. Your tax returns help give them a clear idea of your overall financial health, while pay stubs help them gauge your current earnings. If you’re self-employed or have other sources of income (such as child support), you may need to show your proof through 1099 forms, direct deposits or other means.3. Bank statements and other assetsWhen assessing your risk profile, as Florida Direct Mortgage Lenders we may want to look at your bank statements and other assets. This can include your investment assets as well as your insurance, such as life insurance. Depending on the program, we may request several months’ worth of reserve mortgage payments in your account in case of an emergency. They also check to see that your down payment has been in your account for at least a few months and did not just show up overnight.4. Credit historyIn order to assess you as a borrower, we will need to pull your credit report — with your verbal or written permission. 5. Gift lettersYour friends and family might help you buy a house by giving you money. If that’s the case, you’ll need to provide a written confirmation the money is indeed a gift and not a loan. The documentation should list their relationship to you as well as the amount of the gift.6. Photo IDFor all loans, we will require that you provide a photo ID, such as a driver’s license, passport or State ID. This is simply to prove you are who you’re claiming to be.7. Rental historyFor buyers who don’t already own a home, As Florida Direct Mortgage Lenders will request proof that you can pay on time. They may ask for a year’s worth of canceled rent checks (check that your landlord has cashed). Or, we might ask your landlord to provide documentation showing that you paid your rent on time. Your renting history is especially important if you don’t have an extensive credit history.________________________________________Here is the Bottom line As Florida Direct Mortgage Lenders it is our goal to properly assess you as a borrower and ensure you can make your payments on time. As such, you’ll need to provide them with documents that paint an accurate picture of your creditworthiness by providing information about their assets, debts, income and credit history. However, the exact documents we require could vary from person to person.
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