Mortgage providers can ask for very different amounts of paperwork from people who want to get a mortgage. Depending on the mortgage, you might have to show all of your paperwork or none at all or something in between. In the second group, your credit score and credit history are all the mortgage company needs to know to decide if you can get a loan.
For a full documentation mortgage, you will need to give the following information about your finances:
- Bank statements for the past 2 or 3 months, i.e. checking, savings, etc.
- Forms W-2 from the last two years.
- IRA, 401(k), and SEP statements that go back as far as six to twelve months. Quarterly statements are generally acceptable.
- Your most recent pay stubs, which are usually the last two or three.
Some sub prime lenders [these are mortgage providers who give loans to people who do not qualify for loans from mainstream lenders due to low credit scores] simply allow borrowers to submit bank statements for the past 1-2 years in place of W2 forms and pay stubs. Most of the time, their loan rates are a lot higher than those of a traditional lender.
Your mortgage provider will always give you a list of documents you need and a place to check them off. You can make sure that your loan is processed quickly and correctly if you stick to the list.
