Proof of Income

Your lender needs to understand how much you earn and whether your income is likely to continue. Depending on how you are employed, you may be asked for:

• Recent pay stubs, often covering the last 30 days
• W-2 forms from the past two years
• Federal tax returns from the past two years
• Documentation of bonuses, commissions, overtime, or other income
• Proof of Social Security, pension, disability, alimony, or rental income, when applicable

Tax returns may be especially important for self-employed buyers, independent contractors, business owners, or applicants whose income changes throughout the year. The Consumer Financial Protection Bureau recommends keeping time-sensitive documents, such as pay stubs and financial statements, current throughout the mortgage process.

Bank and Asset Statements

Your lender will also verify that you have funds available for the down payment, closing costs, and, in some cases, financial reserves after closing.

Be prepared to provide recent statements for:

• Checking and savings accounts
• Money market accounts
• Investment or brokerage accounts
• Retirement accounts
• Certificates of deposit

Statements should generally include your name, account number, financial institution, transaction history, and current balance.

Large or unusual deposits may require an explanation and supporting documentation. For example, proceeds from selling a vehicle, transferring money between accounts, or receiving gift funds from a relative may need to be documented.

Identification and Personal Information

You may need to provide:

• A government-issued photo ID
• Your Social Security number
• Current and previous addresses
• Employment history
• Information about monthly debts and financial obligations

Your lender may use this information to confirm your identity, review your credit history, and complete the application.

Documents for Special Circumstances

Some buyers need additional paperwork. This may include:

• Business and personal tax returns for self-employed applicants
• Profit-and-loss statements or balance sheets
• Divorce decrees or child-support documentation
• Bankruptcy or foreclosure records
• Gift letters for down payment assistance
• Lease agreements for rental properties
• Purchase agreements once you have selected a home

Not every applicant will need every document on this list. Requirements can vary based on your income sources, assets, credit profile, property, and mortgage program. Fannie Mae notes that lenders may request documentation to verify income, assets, employment, and other information used to evaluate an application.

A Little Preparation Goes a Long Way

Before sending documents, review them for missing pages, outdated information, or unexplained transactions. Avoid moving large amounts of money, opening new credit accounts, or changing jobs without first speaking with your loan officer. You may also be asked for updated documents as your closing date approaches.

Most importantly, do not let the paperwork discourage you. Consumers National Bank’s experienced loan officers can provide a personalized checklist, explain why each item is needed, and help you gather the right tax returns, pay stubs, bank statements, and supporting records.

Ready to take the next step toward homeownership? Contact a Consumers National Bank loan officer to discuss your mortgage options and begin preparing your application with confidence.