Buying a home is more than just a transaction—it’s the start of something big! The process might feel overwhelming at first, but getting your paperwork together is a great way to set yourself up for success. Once you’ve completed your loan application and shown your intent to proceed, knowing what documents you’ll need can make everything flow more smoothly. Here’s a general checklist to guide you through the necessary steps.
- Identification and Residency History
Before you dive into the financial details, lenders first need to confirm who you are and where you’ve lived. Having these documents ready will help you move through the process smoothly:
- A valid government-issued I.D. (driver’s license or passport)
- A copy of your Social Security card
- Proof of residency for the past two years, which may include landlord information if renting or mortgage statements if applicable
- Employment & Income Verification
Lenders often look for stability in your income and employment history. It’s helpful to have these documents ready:
- Pay stubs from the last 30 days
- W-2 forms and tax returns from the previous two years
- Employment history covering the last two years, explaining any employment gaps
- An offer letter or employment contract if you’ve recently changed jobs
- Proof of Assets
Lenders may want to get a sense of your financial assets to help gauge what you might be able to afford for the down payment and closing costs. Consider having these documents on hand:
- Bank statements for the last two months
- Statements for investment accounts (401(k), IRAs, stocks, CDs, etc.)
- Documentation for any large deposits (such as mortgage gift funds or proceeds from selling an asset)
Remember, a clear paper trail for assets used in the down payment, closing costs, and cash reserves is essential.
- Credit History
Credit scores often affect factors like loan eligibility and interest rates. Lenders review credit reports as part of the process, so reviewing yours in advance may help ensure everything is accurate.
- Debt-to-Income (DTI) Ratio
Lenders use your debt-to-income ratio (DTI) to understand how manageable mortgage payments might be. Having these documents ready helps streamline the process:
- Your monthly gross income, including salary, bonuses, and other forms of income
- A summary of your total monthly debt payments (credit cards, student loans, car loans, etc.)
- Program-Specific Documents
If you are applying for a government-backed loan, you’ll need to provide additional documents, including:
- VA loan: Original Certificate of Eligibility (COE), DD214 discharge paper, and contact information for a nearest living relative
- FHA loan: Social Security card (or copy) for each applicant and co-applicant
- FHA and USDA loans: Total household income for all borrowers moving into the new home
- Additional Documents Based on Your Situation
Depending on your personal circumstances, you may need to provide extra documentation:
- If you paid off a mortgage in the last year, you will need the release of the mortgage lien
- Insurance quotes
- Divorce decree or child support order (if applicable)
- Company tax returns for the last two years if you own 25% or more of a business
- Refinance documents like the note, closing disclosure, and survey
- Relocation agreement, if your employer is financing the move (including any buyout agreements or company-paid closing costs)
Being well-prepared and organized not only helps ease any tension but also signals to lenders that you’re serious about moving forward. By gathering your documents ahead of time, you can sidestep holdups and keep your mortgage journey on track. Save this checklist to stay focused as you embark on your homebuying adventure—and when you’re ready to take the next step, Supreme Lending is here to support you at every turn.