Mortgage Document Checklist and Loan Timeline
Know what to gather before you apply, and what happens at each step from pre-approval to keys. Find your situation below.
What Every Borrower Needs
These apply to almost every loan. Send complete statements, including blank pages.
- Driver’s license or other government photo ID
- Date of birth, Social Security number, and permission to pull your credit
- Bank and investment statements for the last two months, all pages
- Your current address history for the past two years
- Current home address, lease agreement if renting now, or your mortgage statement if you own
- Purchase contract, once your offer is accepted
- Your homeowners insurance agent’s contact information
- A short explanation of any large deposits or recent credit inquiries
Income Documents for Your Situation
Add these to the basics above. If more than one describes you, gather both sets.
W-2 Employees
You are paid a salary or hourly wage by an employer.
- Pay stubs covering the most recent 30 days
- W-2 forms for the past two years
- Your employer’s contact information, for verification of employment
- Federal tax returns for the past two years if a large share of your pay is commission, bonus, or overtime
- An offer letter or contract if you are starting a new job
Most W-2 borrowers use a conventional, FHA, or VA loan.
Self-Employed Borrowers
You own a business, freelance, or receive 1099 income.
- Personal federal tax returns for the past two years, all schedules
- Business tax returns for the past two years, with K-1s, if you own 25% or more
- A year-to-date profit and loss statement
- A business license, or a letter from your CPA confirming how long you have been in business
- Business bank statements for the last two to three months
Write off a lot of income? A bank statement loan uses 12 to 24 months of deposits instead of tax returns. See self-employed mortgages.
Retired Borrowers
Your income comes from Social Security, a pension, or retirement accounts.
- Your current Social Security award letter
- Pension or annuity award letters
- 1099 forms for the past two years (SSA-1099, 1099-R)
- Bank statements showing the deposits
- Recent statements for IRA, 401(k), and investment accounts
- Federal tax returns for the past two years, if requested
Plenty of savings but modest income? An asset depletion loan counts your assets as income. Homeowners 62 and older can also look at a reverse mortgage.
Real Estate Investors
You are buying or refinancing a rental property.
- Current lease agreements for each rental you own
- Federal tax returns for the past two years, including Schedule E
- Mortgage statements for every property you own
- Property tax bills, insurance declarations, and HOA statements for each property
- Statements showing cash reserves
- LLC documents (articles, operating agreement, EIN letter) if you will close in an entity
With a DSCR loan you qualify on the property’s rent, so tax returns and pay stubs are not needed. Check your numbers with the DSCR calculator.
The Loan Process, Step by Step
A typical purchase takes 21 to 30 days from an accepted offer, but we close loans in as little as 15 days. Timing varies with the loan type and how quickly documents come in.
Get pre-approved
Before you shopSend us the documents above. We review your credit, income, and assets and issue a pre-approval letter, usually within a day or two, so your offer is taken seriously.
Offer accepted and escrow opens
Day 1Your agent sends us the signed purchase contract. Escrow is opened and your earnest money is deposited.
Loan application and disclosures
Days 1 to 3We complete your application and send your Loan Estimate and other disclosures to sign electronically. You can lock your interest rate now or later.
Appraisal and inspections
Days 3 to 10We order the appraisal. You complete your home inspection and any other inspections during your contingency period.
Underwriting
Days 5 to 15 or soonerAn underwriter reviews the file and issues a conditional approval with a list of remaining items. Answering these requests quickly is the best way to keep things on schedule.
Clear to close
About a week before closingOnce every condition is met, the loan is cleared to close. You receive your Closing Disclosure, which by law must reach you at least three business days before you sign.
Sign, fund, and get your keys
Days 21 to 30 or soonerYou sign loan documents with a notary and wire your cash to close. The lender funds the loan, the deed records with the county, and the home is yours.
Do and Don’t Until You Close
Lenders re-check your credit, job, and accounts before closing. Keep things steady.
Do
- Keep paying every bill on time
- Keep copies of new pay stubs and bank statements as they arrive
- Tell us right away about any change in your job or income
- Answer document requests within a day when you can
Don’t
- Open new credit cards or finance a car or furniture
- Change jobs or become self-employed without talking to us first
- Make large deposits or move money between accounts without a paper trail
- Co-sign a loan for anyone else
Document and Timeline Questions
What documents do I need to get pre-approved for a mortgage?
Photo ID, permission to pull credit, your last two months of bank statements, and proof of income. For W-2 employees that means recent pay stubs and two years of W-2s. Self-employed borrowers usually provide two years of tax returns, and retirees provide award letters and 1099s.
How far back do lenders look at bank statements?
Most loan programs ask for the last two months of statements for each account, with all pages. Lenders look for the source of your down payment and for large deposits that need to be explained. Bank statement loans for self-employed borrowers use 12 to 24 months.
How long does it take to close a mortgage?
A typical purchase closes in 21 to 30 days from an accepted offer. We close conventional loans in as little as 15 days when the documents come in quickly and the appraisal is on time.
Why does the lender ask for updated documents before closing?
Pay stubs and bank statements go out of date during the loan process, so lenders ask for the most recent ones. Many also re-verify employment and check credit again shortly before closing.
Can I get a mortgage without tax returns?
Yes. Bank statement loans, asset depletion loans, and DSCR loans for rental properties all qualify borrowers without tax returns. They suit self-employed borrowers, retirees, and investors whose tax returns do not reflect their real ability to pay.
What should I avoid doing while my loan is in process?
Avoid new credit, large unexplained deposits, job changes, and co-signing for others. Any of these can change your approval, because lenders verify your credit and employment again before closing.
Not Sure Which Documents Apply to You?
Every file is a little different. Tell us about your situation and we will send you a short, personal list.
Documents listed are typical. Your loan program or lender may ask for more or less.