Purchase Documents Needed

Documents Needed

When applying for a purchase loan, whether it's a conventional loan, FHA loan, VA loan, or any other type of mortgage, you will typically need to provide various documents to the lender to verify your financial information and eligibility.

While the specific requirements can vary based on the lender and loan program, here is a list of common documents needed for a purchase loan:

  1. Personal Identification: You will need to provide a valid government-issued photo identification, such as a driver's license or passport.
  2. Proof of Income: Lenders typically require documents to verify your income, such as:
    1. Paystubs: Recent paystubs that show your year-to-date earnings and employer information.
    2. W-2 forms: These forms provide details of your income and taxes withheld from your employer(s) over the past two years.
    3. Tax returns: Personal tax returns, including all schedules and attachments, for the past two years.
    4. 1099 forms: If you receive income as an independent contractor or freelancer, you may need to provide 1099 forms for the past two years.
    5. Profit and Loss (P&L) statement: If you own a business or are self-employed, you may need to provide a P&L statement prepared by a certified accountant.
  3. Employment Verification: Lenders will typically verify your employment status and history. You may need to provide:
    1. Contact information for your current and previous employers.
    2. Verification of employment letter from your employer(s).
    3. Recent bank statements showing regular deposits of your income.
  4. Proof of Assets: You may need to provide documentation showing your assets, which can include:
    1. Bank statements: Recent statements from your checking, savings, and investment accounts.
    2. Retirement account statements: Such as statements from your 401(k), IRA, or pension accounts.
    3. Gift letters: If you're receiving a gift from a family member or relative to use towards the down payment, you may need a gift letter stating the amount and that it doesn't need to be repaid.
  5. Credit Information: Lenders will pull your credit report, but you may need to provide additional documentation related to your credit history, such as:
    1. Explanation of derogatory items: If you have any late payments, collections, or bankruptcies on your credit report, you may need to provide an explanation.
    2. Proof of resolved disputes: If you've disputed any items on your credit report and they have been resolved, provide documentation of the resolution.
  6. Purchase Agreement: Once you have an accepted offer on a property, you will need to provide a copy of the purchase agreement or sales contract.

It's important to note that these are general documents often required for purchase loans, but additional documentation may be requested by the lender based on your specific situation. It's recommended to contact your lender or mortgage professional directly to get a precise list of required documents for your purchase loan application.