A successful mortgage will be one of the most important financial transactions of your life, so it’s vital to get everything in order so that your Denver mortgage lender can proceed quickly with your loan. Here’s a look at common documents that you’re almost certain to need when you discuss your mortgage with your lender.
W-2s and Tax Returns
Expect to have to provide your W-2s and tax returns to your lender, including schedules and all accompanying pages. You will also have to sign IRS form 4506-T to release a copy of your returns to your lender. Denver, CO mortgage lenders will then compare the IRS copy against what you provide them, to check for problems and unreported income, such as income amounts on your return that doesn’t match the amounts on your W-2s.
Your local mortgage lenders will also want to verify you have a stable income. Usually, guidelines for loans require you to show an income stream over a one month period. Paycheck stubs can easily accomplish this. However, if you don’t receive paper checks, your business website might be able to print out stubs for you. If a printout option is not available, consult with your employer about alternatives.
It is common to provide down payments for mortgage loans, so you will likely have to pledge to put down an amount of money as a condition for receiving the mortgage loan. However, your Denver mortgage lender will need to confirm you have the money. Expect your lender to request your bank statements that show your current savings, as well as documents that show your other assets, like investments, retirement accounts, CDs, stocks and bonds, money market accounts and other savings accounts.
It’s important you get a hold of your credit report before you lender sees it. Credit reports can sometimes contain errors that should be corrected in advance. Sometimes errors can result due to mistaken identity, or more seriously, from someone stealing your identity. Errors can include wrong details concerning amounts you owe, opening dates of accounts, and your credit limit. Additionally, your credit report may have outdated information about an account that you’ve closed and paid off, instead listing it as still open.
Proper preparation can save you delays in getting your mortgage loan approved or even be the difference between approval and failure, so don’t wait until the last minute. Start prepping your financial documents and have them ready to discuss with your Denver mortgage lender.