You will need to provide evidence of your income to the bank or finance company, as this is an important part of the approval process for mortgage loans. The documents that you need to provide will vary depending on whether you are waged, salaried or self-employed. If you are waged you will need to provide four weekly pay slips and evidence of your tax payments, if you are salaried then you will need to show one month’s pay slip and also 2 year W-2 forms. People who are self-employed will need to provide a YTD or statement of profit and loss along with your tax returns for two years. The process may be a bit quicker if you can supply the lender with statements for three months for your bank accounts, stock, and mutual fund account if you have it. Anyone who owns rental property will need to show their tax returns for the previous two years and copies of all rental agreements.

Homeowners who are looking for cash out or refinancing loan and who are divorced will need to show evidence of their decree and will also need to produce a letter stating the reasons why they want the money. If you have any stock brokerage or investment accounts including IRA/401K accounts you will need to provide documentation. If you are not a US citizen then you will also need to provide copies of the front and back of your green card.

It is a good idea to use your annual right to see credit reports from national agencies, Transunion, Experian and Equifax before you apply for a mortgage loan. If your credit rating is not good when you apply for a mortgage loan then you may not get through the approval process. Check your credit reports and if you think there are errors such as; a paid debt is listed as unpaid, items are listed more than once, or a debt older than seven years or bankruptcy older than ten years is still listed, ask to have it removed. Getting errors removed from a credit report and your credit score adjusted accordingly is a lot easier when you have the help of a professional credit solutions company such as Vivix Credit Solutions as they can help repair your credit score much more quickly. If you are looking at a $300,000 mortgage over thirty years and have a high credit score then your rate could be as low as 5.780% but if it is only fair then it could be as high as 9.494%. Having a good credit report and credit score is extremely important if you hope to be successful in the mortgage approval process.