Mortgage loans are not as simple as regular private loans, approval is more complicated as there are always higher levels involved. Therefore, when applying for a mortgage loan, there are lots of documents and proofs you will have to show to become approved. Though each lender is different and consequently, has different requirements for approval, there are some basics or guidelines you should follow to get prepared for the program and as the old saying goes: better more than less.

Mortgage Loans for Past Tenants

If you’re renting before and you are getting special terms for tenants, you will have to show proof of this fact by providing name and contact details of your landlord as well as evidence of rent payments for at least two years. This information is important because the creditor subsequently knows that you have been able to afford your monthly rent payments and so, you will be able to afford the loan payments so long as the amount is not significantly higher.

Nevertheless, you will still need to show proof of income. This is done by supplying employment pay stubs or tax returns if you’re self-employed. Any additional information regarding accounts, stocks, bonds, savings, etc. can provide more incentive to the lender since it demonstrates that you are still capable of responding in the event your income shrinks or you are left unemployed.

Mortgage Loans for Past Bankruptcies

If you have gone through a bankruptcy process in the recent past, you’ll have to demonstrate proof of the that you have been granted the discharge (2 years since the discharge are usually necessary for approval) and that your credit has improved since that point. Therefore, your credit report will be pulled and your credit history examined. In the event that you had a bankruptcy, your credit needs to be impeccable from that moment on and it’s a fantastic idea to provide a written explanation of the reasons for the bankruptcy (special situations that leaded to it).

Mortgage Loans for Previously Purchased Properties

In case you have purchased a property already you’ll be required to reveal the title deed but in case you have decided for the buy and already signed a sales contract which has not been perfected yet because you need to acquire the mortgage loan first, you will need to show a copy of the sales contract signed both by the buyer and the seller in order to prove that the property’s ownership will be transferred to you.

General Requirements

Certain documentation that you’ll always should get approved for your mortgage loan: pay stubs from your employment or a certificate prepared by your employer stating that you work for them and are legally registered, if you’re self-employed, you will need proof of income that can consist on personal or corporate tax returns (if you run a business).
You may also be required to present current balances and other information on outstanding debt like student loans, personal unsecured loans, credit cards, lines of credit, mortgages and home equity loans.