Home Loan Application Documents: What Paperwork Do I Need?

Applying for a mortgage means providing the lender with several records. The lender aims to prevent fraud and incur the least amount of risk. So, they conduct a thorough background check that requires various home loan application documents. Let’s take a look at the most common.

Proof of Identity

To prevent fraud, all applicants must provide proof of identity. Acceptable proof includes passport, driver’s license and proof of age card. Some cases require a second form of ID such as a current utility bill, Medicare card or birth certificate. 

Income

Lenders must know an applicant’s net annual income. The last two payslips are required. An employer letter with the necessary information is acceptable, too. If these cannot be provided, our team offers you additional options.

Expenses

A lender needs to know how much income is left after expenses including rent and board. So, they take a look at your current obligations such as utility bills, child’s schooling and any other extraordinary expenses. 

Assets

Now it is time to evaluate the assets. Bank statements with a three month history are a must. Investment properties, vehicles and shares must be noted, too. Lenders also ask how you plan to give the deposit.

Liabilities

All debt must be disclosed such as vehicle, other mortgages and credit cards. A mortgage is significant debt. Lenders want to ensure that it can be repaid without causing excessive strain. 

Other

At this point, some applicants already have the property secured. Provide the property’s contract, title and transfer of land. Builders need to provide approved plans, building specifications and related contracts.

Applicants who are seeking a refinance are asked to provide the property’s current loan information and the home’s details. These details include the number of bedrooms, bathrooms and garages.

Home Loan Application Documents Conclusion

A successful mortgage application begins with organisation. The sooner all requested home loan application documents are provided, the less delays are encountered. As you begin the process, consider using our free online mortgage calculator, too. Then, our Mortgage House financial professionals answer your questions.