When applying for a mortgage, applicants need to present personal identification, W-2 forms for the previous 2 years or 1099 forms and profit-and-loss statements for self-employed applicants, notes Bankrate. The applicants must also present recent paycheck stubs and their most recent federal tax returns. Some lenders require the previous two tax returns to get a better picture of the applicants' financial health.
In addition, mortgage applicants must also provide the lender with a list of debts, including student loans, credit cards, child support payments and car loans, notes Bankrate. The applicant must furnish the lender with the balance totals and minimum monthly payment amounts for each monthly debt.
The bank or lender also must see the applicants' list of assets, including any automobile titles, statements from brokerages, investment records and mutual fund statements. The lender wants to see any real estate titles and bank statements as well. Applicants must provide canceled rent checks or mortgage payment receipts.
Some other documentation that may be required includes proof that a gift is not a loan if the applicant is using a gift to make the down payment on a home, notes Bankrate. Bankruptcy discharge papers, divorce decrees, proof of a child's age when child support is declared as income and any proof of income from investment properties must also be shown.