Step 4: Get Your Paperwork Together

You will want to pull together key information in preparation for getting a mortgage pre-approval and then the loan application. Your lender needs copies of papers that show the income, assets, and debts for each person named on the loan application. Once you start the loan application process, you'll have to provide paperwork fairly quickly. Your lender will let you know what is required and when. But you can take charge of this step and get your papers together beforehand. Make copies of the following for each person named on the loan application (never submit originals):

Income
Following are typical examples of income and the types of documents you'll need:

• Regular income. Recent pay stub(s), including year-to-date information or your W-2 forms, or, if self-employed, copies of your personal tax returns for the past two years.
• Non-salary income: Income you get on a regular basis, such as bonuses or commissions.
• Other income: Rent, inheritance, alimony or child support. Submit alimony or child support only if you wish it to be considered as part of your regular income.
  

Assets
Your assets include cash and certain items you own. Following are examples of assets:

• Savings account statement
• Checking account statement
• 401(k) or other retirement account statement
• Brokerage account statement
• Life insurance cash value statement
• Deed and deed of trust for real estate
• The vested amount in stock options
• A loan or grant from an employer-assisted housing program or a state or local housing authority
  

Your assets may also include gift money for the down payment. Gift money is given to you by a person who is not expecting repayment. If this is your situation, you will need a gift letter from that person and a bank statement showing deposit of the funds.

Liabilities
Your liabilities are what you owe. Examples include the following:

• Student loans
• Credit cards
• Retail and store charge cards
• Car loans or leases
• Child support or alimony
  

You may have to provide photocopies of documents that prove you are paying child support or alimony.