Mortgage Application Checklist:

• You’ll start by filling out an application.
• Submit the following requested documents:

1. Proof of Identity: Lenders require two forms of ID to verify your identity before proceeding.

• Government-issued ID: A valid driver’s license, state ID, or passport.
• Social Security Number (SSN): You will need to provide your SSN so the lender can pull your credit report.

2. Proof of Income: You need to show that you have a steady, reliable income to cover the monthly mortgage payments.

• Pay Stubs — Usually covering the most recent 30 days.
• W-2 Forms — From the past two years.
• Tax Returns — Your most recent two years of personal (and sometimes business) tax returns. This is especially important if you are self-employed, an independent contractor, or earn significant income from commissions or tips.
• Proof of Additional Income — If you receive alimony, child support, pensions, or social security, you will need documentation (like an award letter or court order) if you want that income considered.

3. Proof of Assets: This is intended to see that you have enough cash for the down payment and closing costs, plus cash reserves left over just in case.

• Bank Statements: The most recent two months of statements for all checking and savings accounts. Lenders will look for large, unusual deposits, which you may need to explain or source (e.g., a gift letter if parents gave you down payment money).
• Investment/Retirement Accounts: Two months of statements for 401(k)s, IRAs, stocks, bonds, or mutual funds.

4. Information on Debts: The lender will pull your credit report, but they will also ask you to disclose your current debts to calculate your Debt-to-Income (DTI) ratio.

• Hard pull credit check
• Statements or details for auto loans, student loans, credit cards, and personal loans.
• If you currently own real estate, you'll need to provide mortgage statements, property taxes, and insurance information for those properties.

5. Contract of Sale (if not seeking pre-qualification)

• An Employment Verification will then be run by your lender to ensure your job situation is stable.
• Pay an application fee, if required.

Helpful Tips:

The 60 to 90 days leading up to a home purchase involve a substantial health check on the individuals applying for a mortgage. Be sure to review the following to avoid major issues along the way.

• Do not take on additional debt during the mortgage application process, as adding additional debt can hurt your qualifying ratios
• Do not make any really big purchases within 2 months of trying to buy a house
• Don’t take out large cash deposits
• Be prepared to have a banker's check

After submitting your application, many things occur behind the scenes. 

• In the beginning, the lender will order an appraisal and flood hazard search for the property you are trying to purchase, because that property becomes the collateral for your mortgage. 
• The lender will then verify the documents you provided.
• Personal background checks will be conducted on all applicants.
• A hard pull credit check will be run to determine if you qualify for a mortgage based on your monthly debt-to-income ratio. This will cause your credit score to dip temporarily for about three to six months.
• A debt-to-income ratio compares your gross monthly income with how much you owe monthly, including your new mortgage, property taxes, and homeowners’ insurance. Most lenders tend to look for an outcome below 43%, though there are some programs that offer higher debt-to-income ratios if needed. 

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Finally, the lender will determine if your mortgage is approved based on all the factors mentioned, your application, credit history, appraisal, and down payment amount.

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