Mortgage Document Checklist for Pre-Approval

If you’re paid a salary or hourly wage (W-2)

• Pay stubs covering the last 30 days, showing year-to-date earnings

  Why I need it: They show what you earn right now. The newest one should be dated within 30 days of your application.

  Source: Fannie Mae B3-3.2-01

• W-2s for the last two years

  Why I need it: They show your pay history so the lender can see your income is steady.

  Varies: Some files need only one year, depending on how you’re paid. A year-end pay stub or IRS W-2 transcript can stand in for a W-2. Overtime, a 10-month salary or hiring-hall pay? See how lenders count it for nurses, teachers, union members and police and fire.

  Source: Fannie Mae B3-3.2-01

• Federal tax returns for the last two years, signed, with every page and schedule

  Why I need it: Many lenders ask for them even with W-2 pay, to see your whole income picture.

  Varies: Not always required for straight W-2 pay. It depends on your mix of income and the loan program. When returns are used, Fannie Mae wants copies of what was filed, with all schedules.

  Sources: CFPB; Fannie Mae B3-3.1-02

• Your employer’s name and address, plus an HR or payroll contact if you have one

  Why I need it: The lender confirms you still work there shortly before closing, usually within 10 business days. Make sure the employer name and address you give me are exactly right.

  Varies: The 10-business-day window is Fannie Mae’s rule. Other programs set their own timing.

  Source: Fannie Mae B3-3.1-04

If you’re self-employed, a 1099 contractor or a business owner

Self-employed files usually take the most paper, so start on these early. My self-employed mortgage guide shows how a lender turns these into income.

• Personal federal tax returns for the last two years, signed, with every schedule

  Why I need it: Self-employed income is judged over time, so the lender reads your returns, not just your deposits.

  Varies: If the business has been around five years and you’ve owned 25% or more of it for those five years, one year of returns may be enough.

  Source: Fannie Mae B3-3.5-01

• Business tax returns for the last two years (partnership, S corp or corporation), if you own 25% or more

  Why I need it: The lender looks at how the business itself is doing, not just what you took home.

  Varies: Fannie Mae treats 25% or more ownership as self-employed. Business returns can sometimes be waived, for example with five years in the business, rising income on your personal returns, and no business money used for the purchase.

  Source: Fannie Mae B3-3.5-01

• Year-to-date profit and loss statement, if the lender asks

  Why I need it: If you apply more than 120 days after your business’s tax year ended, the lender may want this year’s numbers to see the income is holding up.

  Varies: It’s the lender’s call. Fannie Mae accepts audited or unaudited statements.

  Source: Fannie Mae B3-3.7-04

• Proof your business is still open, like a current business license or a letter from your CPA

  Why I need it: The lender confirms the business still exists and you still run it, within 120 days before closing.

  Varies: Fannie Mae lets each lender pick the method that fits your business, so the exact item varies. Ask me what the lender will accept before you dig anything up.

  Source: Fannie Mae B3-3.1-04

• 1099 forms for the last two years, if you’re paid as a contractor

  Why I need it: The IRS generally treats a 1099 contractor as self-employed, so expect the lender to read your tax returns too, not just the 1099s.

  Varies: How 1099 income is documented depends on the lender and loan program.

  Source: IRS

• IRS Form 4506-C for each tax form being used (personal and business)

  Why I need it: Each 4506-C covers one type of tax return, so business owners often sign more than one. It’s good for 120 days after you sign.

  Source: Fannie Mae B3-3.1-02

• Business bank statements or a current balance sheet, if business money is going toward the purchase

  Why I need it: If business funds are part of your down payment, the lender may want to see several months of the business accounts.

  Varies: Only needed if you use business funds. The number of months varies by lender.

  Source: Fannie Mae B3-3.5-01

If you have retirement, pension, Social Security or disability income

• Award letter or benefit statement for each pension, annuity or retirement payment

  Why I need it: It shows the amount and how often it’s paid. If the payments haven’t started yet, it also needs to show the start date.

  Source: Fannie Mae B3-3.4-03

• Social Security award letter, or last year’s SSA-1099

  Why I need it: It confirms your monthly benefit. Benefits based on your own work record usually don’t need extra proof that they’ll continue.

  Varies: If the benefit is paid on someone else’s work record, the lender also checks that it will continue at least three years and wants proof of current receipt.

  Source: Fannie Mae B3-3.4-15

• Last year’s Form 1099-R (or your signed tax return)

  Why I need it: Form 1099-R reports what a pension, annuity or IRA paid you, so it backs up the award letter.

  Varies: Fannie Mae accepts any one of several documents here (award letter, payer statement, bank statement, tax return or 1099). The lender tells you which it wants.

  Sources: IRS; Fannie Mae B3-3.4-03

• A recent bank statement showing the deposit

  Why I need it: It shows the payment is actually landing in your account.

  Varies: Under Fannie Mae this is one of several ways to show the income, not always an extra item. Send it if the lender asks for it.

  Source: Fannie Mae B3-3.4-03

• Retirement account statements (401(k), IRA), if you take regular withdrawals and want them counted

  Why I need it: The lender checks that the account can keep paying that amount for at least three years from your application.

  Varies: Withdrawals that change month to month need 12 months of history and get averaged. A fixed pension doesn’t need the three-year proof in the same way.

  Source: Fannie Mae B3-3.4-03

• If you receive long-term disability income: the policy or a benefits statement from the payer

  Why I need it: It shows the amount, how often it’s paid, and any set end date.

  Source: Fannie Mae B3-3.4-09

If you have rental income

• Your most recent federal tax return with Schedules 1 and E, signed

  Why I need it: Schedule E shows what each property actually brought in after expenses. The lender works from it.

  Varies: If a property wasn’t rented the full year, the lender may also want a signed 12-month lease or two years of returns. Positive rental income usually needs at least 12 months of landlord experience.

  Source: Fannie Mae B3-3.8-01

• Current signed leases

  Why I need it: Used when a property isn’t on your last tax return yet, like one you bought recently, or when a lease transfers to you on a purchase.

  Varies: Fannie Mae only accepts a lease in certain situations. It won’t use a lease on a home you’re moving out of.

  Source: Fannie Mae B3-3.8-01

• If the lender is using a lease: two months of bank statements showing the rent coming in

  Why I need it: For a property that isn’t on your tax return yet, it shows the lease is in effect and the tenant is actually paying.

  Varies: Under Fannie Mae this goes with a lease, not with a property already on your Schedule E. For a brand-new lease, proof of the security deposit and first month’s rent can stand in.

  Source: Fannie Mae B3-3.8-01

• For each property you own: mortgage statement, property tax bill, homeowners insurance declarations page, and any HOA or co-op fees

  Why I need it: The lender subtracts each property’s full monthly cost from its rent before counting any income.

  Varies: Fannie Mae requires the full monthly cost (principal, interest, taxes, insurance, dues) but doesn’t list the exact papers. Lenders vary.

  Source: Fannie Mae B3-3.8-04

• The appraiser’s market rent estimate on the home you’re buying or refinancing. The lender orders this, not you.

  Why it’s on the list: The appraiser estimates market rent so the lender can check the lease numbers.

  Note: Fannie Mae requires it when rent from the home you’re financing is used. The lender picks the right appraisal form.

  Source: Fannie Mae B3-3.8-02

If someone is giving you money toward the purchase

Gift money can work. The lender needs to see where it came from and that you don’t have to pay it back.

• A signed gift letter

  Why I need it: It states the amount, who it’s from (name, address, phone, relationship to you), and that you don’t have to pay it back.

  Varies: Each loan program has its own rules on who can give a gift. Someone with a stake in the sale, like the builder, developer or real estate agent, generally can’t. Under Fannie Mae, gifts can’t be used on an investment property, and some two- to four-unit and second-home loans need part of the money to come from you.

  Source: Fannie Mae B3-4.3-04

• Proof the giver had the money: their bank statement or withdrawal slip

  Why I need it: The lender confirms the gift came from the giver’s own funds.

  Varies: Under Fannie Mae, documented proof that the money moved into your account can be enough by itself. Other programs set their own rules, so ask me before you ask the giver for statements.

  Source: Fannie Mae B3-4.3-04

• Proof of the transfer: a copy of the check and your deposit slip, or the wire or transfer confirmation

  Why I need it: Shows the money moved from the giver to you, or straight to the closing agent.

  Note: Under Fannie Mae’s rules, a gift that goes straight to closing has to arrive by wire, certified check, cashier’s check or another official check.

  Source: Fannie Mae B3-4.3-04

If you’re using a VA loan

Not sure you’re eligible? My guide to VA loans on Long Island covers eligibility and entitlement.

• VA Certificate of Eligibility (COE)

  Why I need it: It shows you qualify for a VA home loan. The lender can often pull it for you online through VA’s system, so ask before you request one yourself.

  Source: VA

• Veterans: your DD214 (discharge or separation papers)

  Why I need it: VA uses it to confirm your service when issuing the COE.

  Source: VA

• Active duty: a statement of service signed by your commander, adjutant or personnel officer

  Why I need it: It stands in for discharge papers while you’re still serving. It lists your name, Social Security number, date of birth, entry date, any lost time and the command providing it.

  Source: VA

• National Guard or Reserve: your DD214, or your statement of service, retirement points statement or NGB Form 22, depending on your service

  Why I need it: VA asks for different papers depending on whether you were activated and whether you’re still serving.

  Varies: VA’s page lists the exact document for each Guard and Reserve situation.

  Source: VA

• If you get VA disability compensation, are eligible for it, or are on active duty and have received a Purple Heart: tell me, and have your VA paperwork handy

  Why I need it: VA doesn’t charge the funding fee in these cases. Eligible here means you’re getting retirement or active-duty pay instead of compensation, or you have a pre-discharge rating before closing.

  Note: VA’s page lists every exemption. Ask me which paperwork fits your case.

  Source: VA

If you’re buying a co-op

I do co-op loans. A lot of the work is on the building’s side, so the sooner I have the managing agent’s contact, the better. My guide to buying a co-op on Long Island explains the share loan and board approval, and my guide to home purchase loans on Long Island covers the rest of the purchase.

• The signed contract of sale for the shares

  Why I need it: It shows the price and the unit. The loan is based on the lower of the price or the appraised value of the shares.

  Varies: Fannie Mae buys co-op loans only on a primary home or second home, not an investment unit. Other loan options have their own rules.

  Source: Fannie Mae B4-2.3-04

• The monthly maintenance amount (from the listing or the managing agent)

  Why I need it: Co-op maintenance counts in your monthly housing cost, right next to the loan payment.

  Source: Fannie Mae B3-6-03

• The managing agent’s name and contact info

  Why I need it: The lender reviews the building, not just you. It sends the managing agent a questionnaire and looks at the co-op’s financial statements and budget.

  Varies: Fannie Mae’s review uses Form 1074 and the co-op’s last two years of audited financials or corporate tax returns. On a loan outside Fannie Mae’s program, the lender sets its own review.

  Source: Fannie Mae B4-2.3-02

• The co-op’s board application package

  Why I need it: Co-op boards can approve or turn down a sale. Their package often asks for many of the same papers as the lender, so gather once and make copies.

  Varies: Each co-op sets its own list and process. Ask the managing agent for the package as soon as your offer is accepted.

  Source: NY Attorney General

• The co-op’s latest financial report and recent board minutes (your attorney usually requests these)

  Why I need it: The Attorney General’s office calls board minutes a very good source of information, and the latest financial report can show costly repairs coming up. Read both before you sign the contract.

  Source: NY Attorney General

• At closing: your stock certificate, proprietary lease, and a stock power you sign

  Why it’s on the list: Your shares and lease are what secure the loan. The lender takes an assignment of the lease and a stock power so it can transfer the shares if the loan isn’t paid. Nothing to gather now.

  Source: Fannie Mae B4-2.3-03

• Recognition agreement (the co-op signs it in the lender’s favor)

  Why it’s on the list: The co-op agrees to recognize the lender’s rights in your shares. The attorneys and the lender handle it. I mention it only so the name doesn’t surprise you.

  Source: Fannie Mae B4-2.3-03

If you receive or pay alimony or child support

• First, decide whether you want it counted

  Why it’s on the list: You don’t have to tell the lender about alimony or child support you receive unless you want it counted as income.

  Source: Regulation B

• If you receive it and want it counted: the court order or written legal agreement that sets the payments

  Why I need it: It shows the amount and how long the payments last.

  Source: Fannie Mae B3-3.4-02

• Proof you’ve received the payments, usually the last six months (bank statements, canceled checks or electronic deposit records)

  Why I need it: It shows the payments really arrive, in full and on time.

  Varies: Six months is Fannie Mae’s rule. Other loan programs set their own receipt history.

  Source: Fannie Mae B3-3.4-02

• Something showing the payments continue at least three more years (often the same order or agreement)

  Why I need it: Payments that are irregular or set to end within about three years may not count as income.

  Source: CFPB

• If you pay it: the court order or written legal agreement that sets what you pay

  Why I need it: Required payments with more than 10 months left count as a monthly debt.

  Varies: For alimony, Fannie Mae lets the lender subtract it from your income instead of listing it as a debt. Voluntary payments don’t have to be counted.

  Source: Fannie Mae B3-6-05