So you’re ready to embark on the mortgage process. Our hats are off to you! And we promise, it’s really not such a daunting ordeal. One of the first and most important steps is gathering the documents you’ll need. We’ve listed them out, simple and clear, to make sure you start the process with your best foot forward. However, if you’re a first-time buyer the list of documents may vary.

Arizona Home Mortgage Documents

  • W2 forms from past two years (if you collect a paycheck)
  • 1099 forms or profit and loss statements (if you own a business)
  • Recent paychecks or stubs
  • Tax returns (most recent)
  • List of debts and monthly debits
  • List of assets
  • Canceled checks for rent and mortgage (if applicable)

Let’s look more closely at what each of these documents entails.

  • W2 forms from past two years (if you collect a paycheck). This is pretty simple. If you collect a paycheck, you’ll need to provide your most recent W-2 tax statement. Sometimes, lenders want the past two years’ statements.
  • 1099 forms or profit and loss statements (if you own a business). The 1099 is important is today’s housing market. You must be able to show what money you have coming in and out of your name.
  • Recent paychecks or stubs. Easy enough to prove a month’s verified income. If you do not have the paper stub for your check, consult your finance department. Their should be records and/or electronic statements online.
  • Tax returns (most recent). You’ll submit your tax return to make sure that it matches your W-2. You’ll also sign IRS Form 4506-T, which verifies your tax return transcript. No fooling the system.
  • List of debts and monthly debits. Your list of debts is one of the most important steps in the mortgage loan process as it begins to detail your debt-to-income ratio. This number is the percentage of your monthly income that is spent on debt payments and scheduled debits. Debts might include:
    • Car loans, student loans, child support, credit card payments, mortgages, etc.
  • List of assets. Your assets assure the lender that should unexpected circumstances arise, you’ll have backing to pull through and continue to make payments.
  • Canceled checks for rent and mortgage (if applicable). Canceled checks show that past payments were made in a timely manner. It leads the lender to believe that you’ll make your new mortgage payments on time, too. If you are a renter and do not have canceled checks, you may be able to provide the contact information of your landlord for verification.

Once all of these items are submitted, your mortgage approval process will begin. If there is any uncertainty, don’t hesitate to reach out to the Nova Home Loans teams. We wish you all the best in the process. You are on to the richest of times!