Home Buying Tips: Mortgage Loan Documents Checklist
This blog was provided by our expert finance partners at Pulte Mortgage.
Purchasing a new construction home is an exciting milestone, but first-time homebuyers may find mortgage loan documents overwhelming. However, with the proper guidance and some preparation, buying your first home can be a breeze! Before applying for new home construction loans, look through our complete mortgage loan documents checklist below. By gathering the loan documents needed for mortgage applications ahead of time, you can ensure a smooth and stress-free application process.
Summary:
- Documents Needed for Mortgage on New Construction Home
- Pre-approval vs. Final Approval of Your New Construction Home Loan
- Next Steps: What Comes After Mortgage Application
- New Build Home Loan Documents Conclusion
Documents Needed for Mortgage on New Construction Home
New construction lenders will request the following mortgage loan documents in addition to your application to prove your identity and give them a better idea of your finances. Save yourself time by collecting these mortgage documents before applying for your new construction home loan:
- A copy of your government-issued ID
- Two months of your most recent bank statements
- Two of your most recent pay stubs
- Two of your most recent W-2s and/or tax returns
If applicable:
- A copy of your previous home sale documents
- A copy of your profit and loss statements
- A copy of your divorce decree
- A copy of any bankruptcy documents
- A copy of your retirement and investment accounts (if you plan to use these funds)
- A gift letter (if you plan to use gifted funds)
- A VA Certificate of Eligibility
Please note: This list is intended to be a guide. Everyone’s situation is unique, and your lender may ask you to provide additional mortgage loan documents not listed above.
Proof of Income
When you apply for a mortgage, one of the first things your lender will verify is your income. They look for stability and consistency in your earnings to calculate how much you can afford comfortably each month.
Do You Need a W-2 for a Mortgage?
If your employer provides a W-2, your lender will likely ask for the last two years from each applicant. If you don’t have them on hand, check with your employer. If you are self-employed, you may need to provide additional documents for a loan, such as profit and loss statements and balance sheets.
How Many Months of Pay Stubs Do I Need for a Mortgage?
Your lender will likely ask for your most recent pay stubs from the last 30 days. If you receive other types of payments, such as overtime or commission, they may ask you to provide additional documentation.
What Tax Documents Do I Need for a Mortgage?
Along with your W-2, your lender may also request your tax returns from the last two to three years to verify your income and the deductions you claimed. They may also use these documents to review your income consistency and job history.
Bank Statements
Your lender will review your bank statements to ensure you have sufficient funds to cover the down payment and closing costs. They may also request additional documentation for any large deposits.
How Many Bank Statements Do You Need to Get a Mortgage?
Your lender will likely ask for two to three months of bank statements to show your balance. You may receive these statements in the mail or download them easily from your bank’s website.
Employment Verification
Your lenders will verify your employment and salary by contacting your employers directly. If you are self-employed, your lender will likely request a transcript of your tax returns through the Internal Revenue Service (IRS).
Credit Report and Score
Your credit score plays a significant role in determining your overall purchasing power when buying a home. While you don’t need to provide your lender with a copy of your credit report, they will require that you grant them permission to check it internally.
Property Information
When purchasing a new construction home and providing documents needed for a mortgage, your lender will ask you to provide the property address and estimated value. Your lender may also require mortgage loan documentation such as building permits, construction plans, and inspections.
Pre-approval vs. Final Approval of Your New Construction Home Loan
As a homebuyer, you can work on getting pre-approved before shopping around for a new home. While a pre-approval is helpful when determining how much home you can comfortably afford, it is not a final approval. A pre-approval only verifies your income, credit score, and eligibility for a loan up to a certain amount. It is not necessarily a commitment to lend and is conditional on your finances and employment remaining the same.
Next Steps: What Comes After Mortgage Application
After you submit your mortgage application, your lender will have three business days to give you a Loan Estimate. This form is a detailed disclosure showing your eligible loan amount, the loan type, interest rate, and all the estimated mortgage costs. Once you’re happy with the loan terms, your application will go through the underwriting process, where your lender will verify every detail of your application. Be prepared to answer questions and provide additional documentation if needed.
It is strongly recommended that you hold off on any major purchases or career changes while your mortgage application is in process. Even the slightest change to your credit score or income could impact your qualification.
New Build Home Loan Documents Conclusion
Applying for a mortgage loan may seem overwhelming, but gathering documents and preparing in advance can make the process simple and stress-free. Keep in mind that the documents required for a mortgage loan may vary, so be sure to check with your new construction lender for their specific guidelines. Use this home loan documents checklist to help you prepare and organize your paperwork, and you’ll be well on your way to financing your dream home!
Explore new construction homes today or browse more Pulte blogs.
Written By: Meagan Rochard, a financial services copywriter based in Denver, and an employee of Pulte Mortgage.
Last Updated: 2/22/24