Mortgage Loan Documents

The mortgage application is one of the most important aspects of a home purchase, especially if you do not have enough cash to buy the house outright. Banks and other authorized lending institutions give mortgage loans, whereby the house is mortgaged for the loan amount and only after the loan is completely settled, is the house legally yours for any sale or further action.

As you apply for a mortgage loan, the banks tend to ask for umpteen numbers of documents. This is only natural as they are giving you huge loans and expect you to repay them as per schedule. In order to keep their end safe as far as repayment is concerned, they need to cross verify a lot of facts about you, personally as well as financially. This is why there is so much of documentation that is required during these applications. A knowledgeable agent can help you to make sure that you have all necessary documents and that you do not fail to get a loan for want of necessary papers.

A List of documents that are normally required is as below:

• Application form which can is normally available with the bank itself. It has all basic details that need to be filled as well as photograph of the applicant.
• Sales contract as signed by the seller and the buyer.
• Social security numbers of all applicants along with attested copies of the cards.
• Address details, including past, present and permanent, if the present is not a permanent address. This is important, as no bank will accept the address of a rental property as a permanent address and will need to furnish addresses of your parents, if they live in any other residence other than yours. This information is collected in order to track the applicant in case of a default.
• Name, account number and bank details of all applicants. The bank details should include any present loans for which payments are being done as well as balances for the previous two years.
• Copies of income slip for the last twelve months. This gives the exact indication about your income patterns, which helps the bank to conclude whether you are financially disciplined and if you can pay back the loan over the period of time.
• Any additional income that you are eligible for, like alimony or government grants has to be proved with relevant documents.
• Copy of the last two years income tax filings.
• DD-214 certificate, if applying for a VA loan.
• Documents proving any past financial history of note, like bankruptcy, foreclosures or short sales.

These have to be submitted in order for the bank to decipher the exact reasons for the outcome and establish your eligibility. Any suppression of such facts shall be considered unlawful.

These documents help you to get the loan and it is important to make sure that all documents are attested properly and do not have any contradictory information.