Applying for a mortgage can sometimes be a rigorous and tedious process. Aside from looking for a lender with the best mortgage interest rates and deals, you will also need to prepare a number of documents before submitting your application. While the basic information needed will sometimes suffice, other lenders will require you to submit more than what is required. Will you need more financial documentation?
When you are applying for a mortgage, the lender typically requires you to submit the following basic information: tax returns and W-2s for the past two years, pay stubs from the last 30 days and assets report from the last 60 days, reports Realtor.com.
While this information would be enough for other homebuyers, certain circumstances would require the applicant to submit more than what is required. The publication notes that when the lender notices something inconsistent with your papers, they may require you to submit additional documents.
For instance, applicants who are divorced are also required to submit a copy of their full divorce decree along with the marital settlement agreement. No matter how long you have been divorced, the lenders will still require you to give them a copy of the above-mentioned paperwork.
Those who have been through a short sale or foreclosure will also be required to submit a final settlement statement for the former or a date of the trustee sale for the latter. As previously reported here on Realty Today, one can still buy a home after a foreclosure as long as the circumstances leading to the short sale were something beyond your control.
Having undocumented money in your bank account may also prompt the lender to ask for supporting documentation to find out where the money is coming from. Those who filed for bankruptcy may also be required to submit more paperwork, especially those associated with the discharge.
