Many mortgage lenders require that you have the all the necessary paperwork with you so that they can be able to verify all your details in regards to your financial life. Some of the financial details that will be looked at are your debts, your income, your assets and much more. The documents that are going to be requested from you have been mentioned below.
- About the W-2s form
According to the guidelines that have been stated, your recent tax terms and form W-2 wage are important when you are applying for a home mortgage. There are those lenders who may ask you for two years of your W-2s.
- Your profile statement
Borrowers who are self-employed will have to submit to the lender a current-year loss and profit statement. This is especially going to be the case if they may not have filed for the previous year of the tax return or if the year is half over. When there was a housing boom, many borrowers who are self-employed got loans with no to little income documentation. However, this kind of loans is now very rare to find.
- Your paycheck stubs
Many Sherwood Mortgage rates guidelines that have been given tend to specify that you give them at least one month of your verified income. You can be able to prove this kind of income by making use of your paycheck stubs. For those employees who are usually paid electronically, then they may be able to access their paycheck stubs on a corporate website and print it out.
- Your tax returns
Your lender is also going to require that you provide your tax returns which is also going to include all the schedules and pages. All these returns are going to be scrutinized for unreimbursed self-employment losses, employee business expenses and also any signs of loan fraud. By loan fraud, this means if there is any reported income that does not match your W-2s. You are also going to be asked to sign an IRS form 4506-T which is the one that is going to allow your lender to get a transcript of the necessary tax returns from the IRS.
- Your list of debts
All the above documents like your paycheck stub, your W-2S, and your tax returns are going to tell your lender just how much you are going to earn. The list of debts is going to tell your lender just how much you owe every single month. Once they get to know how much, the lender is then going to calculate your debt-to-income ratio. This is now what is going to be the key element when it comes to the loan decision that will be made.