Paperwork is a huge part of the mortgage process, so the better prepared you are – the smoother applying for your
mortgage loan can be. 

There are three categories of documents your lender may request: income, expenses, and assets. Knowing what to expect
can help you gather your paperwork and turn it in with ease. 

Income verification

Mortgage lenders typically verify your income in two different ways. First, they’ll want to see your most recent Form
W2 or Form 1099 (if you are self-employed), and they may also ask you to provide recent tax returns. 

Some lenders may accept signed copies of your tax returns; however, many also use the IRS income tax verification process to ensure the forms you
provide are the same as the forms filed with the IRS.

In addition to tax information, be prepared to send in at least a month’s worth of pay stubs to your potential
mortgage lender.  

Expenses verification

Along with income verification, your lender may request verification of your expenses to get a better idea of your
debt-to-income ratio. Providing them a copy of your credit report is a great way to show previous debts and other
financial responsibilities on your plate. 

Along with debts, a lender will generally ask for proof of previous rent or mortgage payments. You can provide a copy
of the checks used to pay your rent; however, some lenders may ask you to sign a form allowing them to verify your
rent independently, without you having to send in documents. 

Verification of Assets

Lenders also ask for borrowers to send verification of assets owned. This may include but is not limited to: stock
portfolios, IRA accounts, or other liquid assets.

Although this list isn’t completely comprehensive of all documents needed, it’s a great place to start when preparing
for mortgage loan approval.