Documents Lenders Want to See When Evaluating a Home Loan

If you’re in the market for a mortgage, it is a good idea to make sure that you can present a coherent argument to a lender that you deserve loan approval. Generally, lenders want to see that you have a steady income, a steady source of income and money in the bank to cover expenses.

Get Ready to Show Your Tax Returns

As part of the home loan approval process, lenders will want to see at least two years of prior tax returns. This will be used to determine your qualifying income, and your qualifying income may be used to determine your debt-to-income (DTI) ratio. If you’re self-employed, your income for the past two years may be averaged to determine how much you can afford to borrow.

Home Loan Companies Will Want to See Your Pay Stubs

Lenders want to see that you have a job because it means that you’ll have money to pay your mortgage with. Furthermore, they want to know how much you make before taxes, union dues and other costs are factored in. A pay stub may also be used to verify that the company that you claim to work for actually exists and that you are an employee there. However, it is rare that a bank or broker representative will actually call your employer to verify your job status or income.

Bank Records May Need to Be Verified

It may be necessary to have a representative from your bank verify that your most recent checking or savings account statement is accurate. Ideally, you won’t make any withdrawals or make any major purchases until a loan officer in Las Vegas is satisfied that you have sufficient reserves to obtain loan approval.