Documentation Requirements For Mortgages

Documentation requirements refer to paperwork required by lender to verify information provided by the borrower regarding income and assets.

Some of the common documentation requested by lenders for mortgages include:

  • Identification card
  • Social security details
  • Computerized pay stubs
  • Employment contracts
  • Income tax statements
  • Bank statements
  • Loan balance statements
  • Agreement of sale
  • etc

While this can seem like a tedious amount of paperwork to a borrower, they are essential to a lender as they cannot take the declarations made by borrowers at face value except under special programs.

Otherwise they could be the target of fraudsters.

While full documentation used to be the standard for lenders, the easing of credit in the general economy has caused special programs with varying documentation requirements to spruce up all over the country.

Some of these special lending programs have become so widespread that their own terms used for their specific documentation requirements are very well established.

Some of them include:

  • No Income No Asset
  • No Asset
  • No Asset Verification
  • No Income
  • Stated Assets
  • Stated Income With Verified Assets
  • Stated Income With Stated Assets
  • etc

Take note that even though these types of home loan documentation requires are pretty standard, lenders implementing them can make adjustments to these requirements.

Some might ask for more documentation, while some might ask for less.

Many consumers can afford their own homes, but full documentation requirements can render their applications pointless.

These special programs have helped thousands of people become homeowners.

And because anything other than full documentation is perceived as higher risks by lenders, borrowers can expect to pay more interest rates for mortgage underwritten from less than full documentation.