Do This – Don’t Do That

Here’s a comprehensive list for both what a mortgage loan applicant will need and what they should avoid doing after submitting the application:

Paperwork Needed for a Mortgage Loan Application

Proof of Income
Recent pay stubs (last 1–2 months)
Tax returns (last 2 years)
W-2 forms (last 2 years)

Proof of Employment
Employer contact information
Employment verification letter (if self-employed, provide business tax returns and profit/loss statements)

Credit Documentation

Authorization for credit report
Explanation of credit inquiries, if any

Proof of Assets
Bank statements (last 2–3 months)
Statements for investment accounts (stocks, bonds, retirement)
Documentation for large deposits (if applicable)

Proof of Identity
Government-issued ID (driver’s license or passport)
Social Security number/card

Debt Information
Monthly statements for credit cards, auto loans, student loans, or other debts
Child support/alimony payment documentation (if applicable)

Property Information (for refinances or purchase)
Purchase agreement (for buying)
Homeowners insurance information
HOA documentation (if applicable)

Gift Letter (if receiving a gift for a down payment)
Letter from donor stating the gift is not a loan

Rent History
Rent payment history (if applicable)
Contact info for landlords

Other Documents (varies by lender)
Divorce decrees (if applicable)
Bankruptcy discharge papers (if applicable)

10 Things NOT to Do After a Mortgage Application

Do Not Change Jobs or Income Sources
Employment stability is critical during the loan process.

Do Not Make Large Purchases
Avoid buying cars, furniture, or other big-ticket items that could affect your debt-to-income ratio.

Do Not Apply for New Credit
Avoid opening new credit accounts or allowing hard inquiries on your credit report.

Do Not Close Credit Accounts
Closing accounts can negatively impact your credit score.

Do Not Make Late Payments
Continue paying all bills on time to avoid credit score drops.

Do Not Move Large Amounts of Money
Avoid large deposits or transfers without documentation, as they will raise red flags.

Do Not Co-Sign Loans
Co-signing increases your liability and affects your debt-to-income ratio.

Do Not Underestimate Closing Costs
Be prepared for costs beyond the down payment, such as closing fees and prepaid items.

Do Not Ignore Lender Requests
Promptly respond to requests for additional documents or information.

Do Not Change Bank Accounts
Keep your finances consistent and easily traceable throughout the process.