Photo: Adam Rifkin

Each lender requires certain documentation be provided by the borrower with their home loan application.  This information can differ slightly from lender to lender, but there certain documents are generally required, regardless of property location, loan amount, or income level of the borrower.  There are some documents that will be ordered from third parties, like appraisals or title insurance, but the lender will generally take care of that during underwriting.

This is not an exhaustive list of all the documents a lender can require, rather a list of documents that may be required from the borrower.

Uniform Residential Loan Application (1003)
This is the industry standard loan application and it collects various information about the property on which you want to place a loan, and also the borrower’s personal and financial data. It is used as a summary sheet to keep important loan data in one place and allows the lender to enter the information into their computers for underwriting purposes.

Credit Report
Your FICO score is one of the most important parts of any loan application. All things being equal, a higher score generally earns you a more competitive interest rate. If your score is too low, you may not be approved for a loan at all. Generally, when shopping for a loan, you’ll be asked for consent that will allow the lender to pull your tri-merge credit report and obtain your FICO score.

Income Verification

Stated loans went out with subprime mortgages. These days, most home loans are full-documentation with income verification. You’ll need to provide proof of employment, which can be as easy as supplying the phone number for your employer’s human resources department, or if you are self-employed, you’ll need to show corporate formation documents or independent contractor agreements.  To prove your level of income you’ll need to show the lender several years prior tax returns and W-2 or 1099 statements. Some lenders may want additional proof of income and request your bank statements to show the money actually went into your accounts.

Real Estate Contract and Current Title Documentation
If you are purchasing a home you’ll need to show a valid real estate purchase and sale agreement and current title documentation which will be ordered by the lender during the underwriting phase. The lender will want to make sure the property has marketable title, which means it can be freely transferred from one party to another without any encumbrances or liens.  For refinances, you’ll still need to do the title work, but in place of the purchase and sale agreement you will substitute a current mortgage statement.

It can take some time to put together all the required borrower paperwork so it’s a good idea to get that done before you start shopping for a loan. Doing so will help speed-up the lender’s underwriting process and help you close on the loan sooner rather than later.

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