Pay Stubs

• A mortgage lender will ask for your pay stubs to review the amount of your current income as well as your year-to-date earnings. Give your lender copies of your last four weekly pay stubs or your last two biweekly pay stubs to review your deductions. Wage garnishments, 401(k) loan payments, alimony payments, child support payments or other bills that get debited against your income will be factored into your overall debt ratio.
  
  

Tax Forms

• Your tax returns provide a lot of information for lenders, such as your family size and the types of deductions that are claimed against your income. Tax returns are helpful if you have multiple sources of income. Your pay stubs and W-2s will reflect your earned income. However, if you rent investment properties or receive interest income, the amount reported for tax purposes may be contributed toward your income calculation. Income that is derived from self-employment or earnings as an independent contractor will require your tax returns in addition to any 1099 Forms that you receive. Mortgage lenders will scrutinize your tax returns if you are considered self-employed to determine your bottom line earnings after your business expenses are deducted.
  
  

Homeowner Insurance

• Homeowner insurance is a basic requirement for all mortgage loans, as the lenders who provide a first or second mortgage will want protection against disasters. The occurrence of an unfortunate event such as a fire or natural disaster could severely damage your home and homeowner insurance provides the necessary funding for repairs or rebuilding of your home. For example, if your property is totally destroyed and you decide to move, the insurance might cover the majority of a lender's loan against the property.
  
  

Identification

• During the application process, provide your social security number to undergo a credit check and to validate your identity. Submit your date of birth and addresses for the past two years as well as proof of citizenship, if your identity is difficult to establish. During the closing of escrow for your loan, you can validate your identity using a state-issued or government-issued photo identification.