Documents to Buy a House

So let’s de-stress the process for you. The best and easy first step to take when you decide to purchase a new home is to take the time to gather all of the documents a lender will ask for. This way you’re not scrambling at the last minute to look for a random bank statement or receipt from a year ago.

What Documents Do I Need to Buy a House?

To help you get started, here are the most requested documents mortgage lenders ask for:

1. Pay Stubs Showing 30 Days of Income

Likely you predicted this one, but, yes, lenders will want proof that you are being paid. And that, yes, you are being paid consistently and on a monthly basis.

The best thing to do here is pull together your most recent paystubs, showing at least 30 days of income. If you do not have physical copies or access to digital ones, you will want to contact your HR department to request them

2. Proof of Employment for the Last 2 Years

That pay has to come from somewhere, and your lender will want to know who you are working for to earn it. Some lenders will accept your pay stubs as proof of employment. However, most will require you to get a letter from your current employer confirming the date you were hired and your current employment status with them.

While you’re at it, you may as well take the time to list all of your employers from the last two years because they’re going to ask for this information, too. Be sure to include the company names and addresses, as well as the names and contact information of the people you reported to

3. Proof of Business Ownership

If you’re also self-employed, either on the side as a freelancer or full-time, then you will need to show that 1) you’re operating a business and 2) you are making consistent income from said-business. To accomplish this, draw up a year-to-date profit and loss statement, as well as your tax returns. Just make sure they’re signed by you.

4. Proof of Other Income Sources

If you’re receiving any other type of income, such as social security, disability, or pension payments, then you will want to disclose this information to your lender of choice. Please note you do not need to disclose child support and alimony payments. However, you may wish to discuss it with your loan officer to see if it would be appropriate.

5. 30 to 60 Days of Bank Statements

Ever wanted a snapshot of what something looked like in the past? Well, your lender wants a full picture of your bank account’s transactions — incoming and outgoing — for the last 30 to 60 days.

6. Tax Returns and W2s

Lenders want to verify your income even further by checking it against what was reported to the IRS. For this reason, they will ask for at least two years of tax returns and W2s (signed by you), so they can review your income history. Please be aware you may be required to provide an explanation or further documentation if your income has changed dramatically from year to year.

7. List of Any Outstanding Debt

One of the ways your lender will qualify you is by checking your debt-to-income ratio. This means they will want to look at any outstanding debts you have and measure it against your actual income. So go ahead and take the step to gather recent statements from your creditors showing current balances. Think: student loans, car loans, credit card debt, personal loans, and existing mortgages (if any).

8. List of Existing Assets

Your lender will want to know if you have any existing assets like stocks, bonds, and other types of securities. If you do, you will need to provide statements showing the values of those assets. This includes the money you plan to use as your down payment.

9. Proof of Current (or Formerly Owned) Properties

If this isn’t your first time purchasing a home, and you currently own a property, get ready to provide proof that you own your current home or that you sold your former home. On the other hand, if you used to own a property but sold it, you will need to provide proof showing this as well.

10. Your Residential History

Mortgage lenders will want to know where you’ve lived for the last two years. Have your home addresses ready, along with any landlords’ names (if applicable) and their contact information.

11. The Source of Your Earnest Money

Once you make your offer and provide a deposit to be kept in escrow to show you are committed to buying the property — called "earnest money" — you have to provide documentation showing where that money came from. This could be a PDF of your savings account history or a letter to confirm the source was legitimate.