What Documents Are Needed When Purchasing a Home?
Buying a home is an exciting journey, but before you can secure financing, you’ll need to provide certain documents for your mortgage application. Having these documents ready in advance can help speed up the process and make your home-buying experience smoother. Below is a checklist of what you’ll need, including additional items if you already own a home.
Basic Documents for All Homebuyers
Whether you’re a first-time homebuyer or a seasoned homeowner, these documents are required:
Clear Copy of Driver’s License – A valid form of identification for everyone on the loan. You can text this to us for convenience.
Pay Stubs – Provide the last 30 days of pay stubs per borrower, showing current and year-to-date earnings.
W-2 or 1099 Statements – You’ll need the past two years of W-2s (for employees) or 1099s (for independent contractors).
Employment Verification – A contact name and number for someone who can confirm your employment verbally with your lender.
Bank Statements – The past three months of complete bank and asset statements. These must include all numbered pages, even if they’re blank. Screenshots or printouts will not be accepted unless stamped and dated by the bank. Any large deposits must be documented and sourced.
Retirement & Investment Statements (if applicable) – If you’re using funds from a retirement or investment account for your purchase, provide the most recent statements for these accounts, including all numbered pages, even if they are blank.
Gift Funds Documentation (if applicable) – If a family member or another source is gifting you money for your down payment, we will need a gift letter and documentation of the funds transfer. Let us know, and we’ll send the necessary paperwork to guide you through this process.
Additional Documents for Self-Employed Borrowers
If you are self-employed or own a business, you’ll need additional documentation to verify your income:
Federal Tax Returns (1040s & 1120s) – Provide the last two years of personal and business tax returns, including all schedules.
Business Bank Statements – If you have a separate business account, be prepared to submit bank statements to verify cash flow.
Profit & Loss Statement – Some lenders may require a year-to-date profit and loss (P&L) statement, especially if tax returns are outdated.
Additional Documents If You Already Own a Home
If you currently own a home and are purchasing another property, additional documentation may be required:
Current Mortgage Statement – If you still have a mortgage, provide a recent statement showing the remaining balance and payment details.
Homeowners Insurance Declaration Page – Proof of insurance coverage for your current home.
Property Tax Statements – A copy of the most recent property tax bill for any homes you currently own.
Homeowners Association (HOA) Documents – If your current home or the one you’re purchasing is part of an HOA, you may need to provide HOA statements or fees.
Why Having These Documents Ready Matters
Having these documents organized and readily available will help ensure a smooth and fast mortgage approval process. Missing or incomplete documents can delay your loan, so it’s best to gather them early in the home-buying journey.
At North Star Mortgage Network, we are committed to making the process as simple and stress-free as possible. If you have any questions or need guidance, our team is here to help!
