Mortgage Application Checklist: Documents You Need to Apply

To apply for a mortgage, you’ll need 30 days of pay stubs, 2 years of W-2s, 2 years of tax returns, 2-3 months of bank statements and valid ID. Self-employed borrowers need business tax returns and a profit/loss statement. Additional documents may be required based on your situation—gift letters, divorce decrees, bankruptcy papers or explanations for credit issues. Having everything ready before you apply speeds up approval significantly.

Essential Documents for Everyone

Income Documentation

Document	What’s Needed
Pay stubs	Most recent 30 days
W-2 forms	Past 2 years
Tax returns	Past 2 years (may not always be required)

Asset Documentation

Document	What’s Needed
Bank statements	2-3 months, all pages
Investment accounts	2-3 months
Retirement accounts	Most recent statement

Identification

Document	Purpose
Driver’s license	Primary ID
Social Security card	SSN verification
Second ID	May be required

Property Information

Document	When Needed
Purchase contract	After accepted offer
Property address	For application
Listing information	For pre-approval

W-2 Employee Checklist

Required Documents

• Pay stubs (most recent 30 days)
• W-2 forms (past 2 years)
• Bank statements (2-3 months, all pages)
• Driver’s license or government ID
• Social Security card or number
• Investment account statements (if using for reserves)
• Retirement account statements (if using for qualification)

Additional If Applicable

• Tax returns (if requested by lender)
• Bonus/commission documentation
• Overtime verification
• Second job documentation

Self-Employed Checklist

Required Documents

• Personal tax returns (past 2 years, all schedules)
• Business tax returns (past 2 years, if applicable)
• Year-to-date profit and loss statement
• Business license
• Bank statements (personal, 2-3 months)
• Business bank statements (2-3 months)
• Driver’s license or government ID
• Social Security card or number

Additional Documentation

• CPA letter confirming business status
• 1099 forms (if applicable)
• Articles of incorporation
• Partnership agreements

Additional Situation-Specific Documents

If Receiving Gift Funds

• Gift letter (signed by donor)
• Donor’s bank statement (showing funds available)
• Transfer documentation (wire confirmation, check copy)
• Your bank statement showing deposit

If Recently Divorced

• Divorce decree
• Property settlement agreement
• Child support order
• Alimony order
• Proof of payment history (if receiving)

If Receiving Alimony or Child Support

• Court order
• Proof of receipt (bank statements, 6+ months)
• Proof payments will continue 3+ years

If Paying Alimony or Child Support

• Court order
• Proof of payment history

If You Had Bankruptcy

• Bankruptcy discharge papers
• Bankruptcy schedules
• Explanation letter

If You Had Foreclosure or Short Sale

• Settlement statement
• Documentation of circumstances
• Explanation letter

If You’re a Veteran (VA Loan)

• Certificate of Eligibility (COE)
• DD-214 (discharge papers)
• Statement of service (if active duty)

If You Own Rental Property

• Lease agreements
• Tax returns showing rental income
• Rent rolls (if multiple units)
• Mortgage statements for rental properties

If You Have Large Deposits

• Source documentation for deposits over $500-$1,000
• Explanation letters
• Supporting documents (sale receipts, gift letters, etc.)

Document Preparation Tips

Before You Apply

Organize by category:

• Income documents in one folder
• Asset documents in another
• ID documents separate
• Property documents when available

Digital copies:

• Scan or photograph all documents
• Clear, readable images
• PDF format preferred
• Organized file names

Check completeness:

• All pages of bank statements
• All schedules of tax returns
• Front and back of checks
• Complete pay stub (not just earnings)

Common Document Mistakes

Mistake	Solution
Missing bank statement pages	Submit ALL pages, even blank ones
Incomplete tax returns	Include all schedules and W-2s attached
Expired ID	Renew before applying
Blurry images	Retake with good lighting
Wrong years	Double-check dates on all documents

During the Application Process

What to Expect

Initial submission:

• Lender reviews what you provide
• Processor may request additional items
• Respond quickly to requests

Underwriting requests:

• More specific documentation
• Explanation letters
• Updated documents

Before closing:

• Updated pay stubs (within 30 days of closing)
• Updated bank statements
• Final verification of employment

Keeping Documents Current

Document	Must Be Current Within
Pay stubs	30 days of closing
Bank statements	60 days of closing
Credit report	120 days of closing
Appraisal	120 days (may vary)

Documents You DON’T Need

Not Required

• Utility bills (unless proving residence)
• Medical records
• References
• Resume
• Marriage certificate (usually)
• Birth certificate

When These Might Be Needed

Utility bills: Proving residence at current address

Marriage certificate: If recently married and documents show different names

Explanation Letters

When Required

You’ll need to explain:

• Gaps in employment
• Large deposits
• Credit issues
• Bankruptcy or foreclosure
• Address discrepancies
• Name variations

What to Include

Keep it simple:

• Briefly explain the situation
• Include relevant dates
• State how it’s resolved
• Sign and date the letter

Sample Explanation Letter

“To Whom It May Concern:

Regarding the $5,000 deposit to my Chase checking account on March 15, 2024:

This deposit was a gift from my mother, Jane Smith, to help with my home purchase. A gift letter is attached confirming no repayment is expected.

Sincerely, [Your name] [Date]“

Speeding Up Your Application

Before You Start

1. Gather all documents in advance
2. Review for completeness
3. Make digital copies
4. Organize by category
5. Have explanations ready for any issues

During Processing

1. Respond to requests within 24 hours
2. Provide complete documents first time
3. Ask clarifying questions if unsure
4. Keep copies of everything submitted
5. Follow up if you don’t hear back

Red Flags That Slow Things Down

Issue	Why It’s a Problem
Unexplained deposits	Needs sourcing
Employment gaps	Needs explanation
Recent job change	Additional verification
Self-employment	More documentation needed
Multiple bank accounts	More statements to review

Frequently Asked Questions

What documents do I need for a mortgage?

At minimum: 30 days of pay stubs, 2 years of W-2s, 2-3 months of bank statements and valid ID. Self-employed borrowers also need 2 years of personal and business tax returns.

Why do lenders need so many documents?

Lenders must verify your ability to repay (income), your assets (for down payment and reserves) and your identity. Federal regulations require this documentation.

How far back do bank statements need to go?

Typically 2-3 months. Large deposits may require tracing back further to document the source.

Do I need to provide all pages of bank statements?

Yes, even blank pages. Missing pages cause delays as lenders request complete statements.

What if I’m missing a document?

Contact the source to get a replacement. For W-2s, contact your employer or the IRS. For bank statements, download from online banking.

How should I submit documents?

Most lenders have secure upload portals. You can also email or fax. Digital copies (scans or photos) are standard. Make sure images are clear and complete.

Will I need to provide more documents during the process?

Likely yes. Underwriters often request additional items, updated documents or explanation letters. Respond quickly to keep things moving.

How long should I keep mortgage documents?

Keep closing documents permanently. Keep application documents for at least 7 years for tax purposes. Digital copies are fine.