Required Documents for Mortgage Qualification
Unless you're paying entirely in cash upfront, you will need to get a mortgage to buy a new home in Denver.
To qualify for a mortgage, you're going to authenticate the income and tax information in your application by providing a list of documents.
Do you have everything you need? Check out the list of the required documents to double check:
- Signed disclosures
- The social security card belonging to each person involved in the purchase
- A list of home addresses for all properties lived at in the last two years
- Two to three months of bank statements
- Two previous pay stubs
- Proof of down payment
- Previous two years' W-2 forms
- Previous two years' tax returns
- The purchase contract (if it's available)
- Details of your employment
In certain circumstances, a borrower may also have to provide:
- Evidence of other income (child support, etc.)
- Divorce settlement papers
- Balance sheets (if self employed)
- Gift letter (if, for instance, parents are providing the down payment)
- Evidence of other debt (student loans, credit card debt, etc.)
Some Other Requirements
- After completing your mortgage application, you will need to provide consent for the lender to proceed. This gives the mortgage provider permission to investigate your application.
- After all required documents have been submitted and the application is completed and submitted, the lender is required to give you a Loan Estimate within three days. This estimate will summarize your monthly payments and loan terms.
- Before approving the loan, the lender must order a home appraisal. An appraiser then determines the property's market value based on factors such as
- The number and size of rooms
- Recently sold comparables
- Unique features or amenities of the property in question
Appraised value affects the amount and terms of the mortgage.
Once everything above is complete and the borrower is in agreement, the final approval can be given by the lender.