What documents do I need to apply for a mortgage?
Most first-time buyers need a recent pay stub, W-2s from the last two years, the last two full months of bank statements, and a government-issued photo ID. Self-employed buyers, veterans, and anyone using gift money or paying or receiving support need a few extra items. Your Brown advisor confirms exactly which ones your loan needs.
Identity and basics
- Government-issued photo ID, such as a driver’s license or passport
- Social Security number for each borrower, for the credit check
Income (paid employees)
- Most recent pay stub, dated within 30 days of your application and showing year-to-date earnings
- W-2s from the last two years
- Award letters for Social Security, pension, or disability income
- A signed offer letter, if you are starting a new job
Self-employed and 1099 income
- Two years of signed personal federal tax returns, with all schedules
- Business tax returns, if your lender requires them
- 1099 forms from the last two years, if you are paid as a contractor
- A year-to-date profit-and-loss statement, if your lender asks for one
Assets and down payment
- The last two full months of statements for every checking and savings account, all pages
- Statements for investment or retirement accounts you plan to use
- A written explanation and source for any large non-payroll deposit
Gift funds
- A gift letter signed by the person giving you the money
- Proof of the transfer, such as a copy of the check and your deposit slip, or a transfer record
Military service (VA loans)
- DD-214, if you are a veteran
- A statement of service signed by your commander, adjutant, or personnel officer, if you are on active duty
- Your Certificate of Eligibility (COE), which your lender can often request for you
Divorce, support, and other situations
- Divorce decree and any settlement agreement
- Court order for child support or alimony paid or received, plus proof of payments
- Proof of on-time rent payments or your landlord’s contact information, if your advisor asks
What should I do before I apply for a mortgage?
Before you apply, check your credit reports for errors, estimate your payment with a calculator, decide how much cash to keep after closing, and gather your documents in one folder. Mention gift money, down payment assistance, or a job change early so your Brown advisor can plan around them.
Before-you-apply checklist
- Pull your free credit reports from all three bureaus at AnnualCreditReport.com (free weekly) and dispute any errors.
- Estimate your monthly payment, including taxes and insurance, with the Brown mortgage calculators.
- Put every document from this checklist in one folder.
- Tell your advisor about gift money, assistance programs, or a new job.
- If you are self-employed, talk with your advisor before you file your taxes.
- Hold off on new credit cards or loans.
What should I avoid before my mortgage closes?
Keep your finances steady from application to closing. Avoid opening new credit, financing a car or furniture, changing jobs without talking to your advisor, making large deposits you cannot document, co-signing for anyone, and missing payments. Lenders often re-check credit and employment shortly before closing, so call your Brown advisor before any change.
Do not do these before closing
- Opening new credit or financing a car, furniture, or appliances. New debt changes your debt-to-income ratio.
- Changing jobs or pay structure without talking to your advisor first. Fannie Mae has lenders re-verify employment within 10 business days before closing.
- Making large deposits you cannot document. Under Fannie Mae rules, a deposit over half your monthly qualifying income needs a documented source if you use those funds.
- Co-signing a loan for anyone.
- Missing or paying late on any bill.
- Moving money between accounts without keeping the statements.
- Following wiring instructions from an email.
Brown – A Legacy of Home Lending is a team of Preferred Rate, a Division of American Pacific Mortgage Corporation, NMLS #1850. Licensed in IL, IN, MO, WI, and FL. Equal Housing Opportunity. This information is for educational purposes only and is not a commitment to lend. All loans are subject to credit approval, underwriting, and property eligibility. Rates, terms, and programs are subject to change without notice. Licensing details.