Skip to main content

List of Common Documents for Refinance


The Most Common Mortgage Documents for Refinance


Have you ever wondered, what are the most common mortgage documents for refinance? Today we will discuss and prepare you to be ready with some of the critical documents that are asked by the lenders

When it is time to apply for a mortgage or refinance you will have them ready instead of stressing yourself to fetch them after they are asked for.

If you are getting ready to purchase a new home or refinancing, we would suggest you make a folder on your computer that contains the list of documents for refinance so it can be accessed from anywhere anytime.

1. Tax Returns


Tax returns mostly would be asked by the lender if you are self-employed or have income sources other than your employment. Mid to late February is the time most people think of getting their taxes filed however, you have till April 15th to do your final submission.

As you gather your paperwork for filing your taxes you want to make sure you have your last 2 years of tax returns. Not necessarily your refund check, or the signature page but the entire tax return statement.

Lenders might want to take a look at the entire tax returns for the last two years. If you have filed your tax returns professionally, you might have received it electronically from your CPA in form of PDF. Once you have them save it in the folder that you created on your computer.

In this folder, you may want to save the tax returns for each year in different folders for easy access. For example, Tax 2018, Tax 2019.

2. Pay stubs


if you are employed, another critical common mortgage documents for refinance is a pay stub. Lenders would be needing at least one month’s latest pay stub to verify your income. Some lenders may ask for more than one month’s pay stub.

We suggest you make sure you have them from your employer. Many employees get direct deposits from their employers. In this case, you can get in touch with your Human Resources department or Personnel Department and ask them to send it electronically in the form of PDF.

Your HR department would be able to send it through e-mail which you can now save in the Mortgage document folder on your computer. Many employers nowadays have a portal where employees can get access and get more information about their paycheck like gross pay, pay cycle, etc.

You might want to update your pay stubs while in the process of getting a mortgage or refinancing. Before closing on the loan, lenders might ask you for the latest pay stub for verification purposes.

3. W2 Statements


If you are employed with a company that deducts taxes before paying you, you might receive a W2 statement from your employer every year which shows your tax deductions from your income.

Not necessarily every lender asks for this. However, you might want to keep the W2 statements saved in your Mortgage documents for refinance folder for the last two years just in case if it is asked by the lenders.

4. 1099 Forms


Independent contractors receive 1099 forms as a record of income earned. 1099 forms are not just issued for income but also interests, dividends, tax refunds, unemployment benefits, etc.

Again this form is asked by the lenders only in certain situations. Your trusted loan officer is the right person to answer any queries you may have.

If you are an independent contractor you might want to saving it in the mortgage documents for refinance folder this could save you a lot of time while you are in the process of refinancing.

5. Bank Statements of Assets


Some lenders may also ask all of your bank statements. Every account you have with different banks that you have money in, they might ask you for 2 months of bank statements. These statements could include all your saving accounts and checking account.

6. Social Security Award Letter & Pension Letter


These documents would be asked by the lender if you are a retired individual applying for a refinance. If you are getting income from Social security you would be asked to provide a copy of an award letter.

If you don’t have an award letter, you can get it by calling or visiting your local social security office. Similarly, if you are getting a pension you can get the letter from your former employer. Along with these letters, lenders would also need bank statements supporting the fact that the money is getting deposited in your account.

7. Driver’s License


Every lender would need a copy of the legal identification of the person applying for refinancing and, a driving license is one of them. The lender might ask you to send a copy of your driver’s license either by fax or through e-mail. You might want to scan and save a pdf of the same in your mortgage document folder.

Conclusion


These are just some of the most common mortgage documents for refinance depending on your financial situation. There is always a chance that a lender may ask for more documentation depending on your specific situation.

Our intent is to make sure you are ready with the documents when you decide to refinance and make sure the refinancing process is as smooth as possible.

Comments

Popular posts from this blog

Public Feedback Requested By CFPB

  The Home Mortgage Disclosure Act underwent certain changes and to evaluate whether it is meeting the stated goals of detecting discrimination in mortgage lending the  Consumer Financial Protection Bureau  is seeking comments. The CFPB requests for assessment of the mortgage disclosure law and checks if it meets the objectives of the  Dodd-Frank Act . To abolish discrimination in mortgage lending in 1975 the Congress enacted . The bureau said the request comes after an August report found that mortgage lenders as compared to white applicants were charging higher interest rates and denying credit to Black and Hispanic applicants. The   bureau said that with this evaluation the CFPB will be able to maintain a fair, competitive, and non-discriminatory mortgage market. They added that the assessment is an opportunity for the Bureau to get an idea if the earlier HMDA rulemakings have improved upon the data collected, thereby reducing loans on financial institutions, and streamlining and mo

What is an Appraisal Contingency? — Best Guide for Homebuyers

  About Appraisal Contingency If a home is appraised for less than the purchase price included in the contract then there is a provision that is included in the purchase contract allowing homebuyers to back out of their contract this is termed as an  appraisal contingency  clause. Buyers who use financing to buy a house or are  buying homes  in areas where prices are volatile commonly use Appraisal contingencies. How do Appraisal Contingencies work? Purchase offers have appraisal contingencies inserted into them to notify the seller that the buyer intends to have the property appraised as part of their purchase for the financing process. If th e  property doesn’t appraise for the amount the buyer offered to pay then this contingency allows them the option of backing out of the contract without losing their earnest money deposit or facing other penalties. During an appraisal, a licensed professional is hired by the homebuyer to examine the property and evaluate it against the recent sal

What is Fannie Mae and Freddie Mac?

Understanding  Fannie Mae  And  Freddie Mac What is Fannie Mae and Freddie Mac? Fannie Mae or FNMA  is a nickname for Federal National Mortgage Association. It was established in 1938. It is a Government-sponsored Enterprise (GSE). In 1968, Fannie Mae ceased to exist as a government entity and became quasi-governmental, federally charted corporation to buy mortgages other than those insured by the Federal Housing Administration, otherwise known as FHA. Freddie Mac or FHLMC  is a nickname for Federal Home Loan Mortgage Corporation. Freddie Mac is also a government-sponsored enterprise (GSE) which was brought into existence in the year 1970 by the Congress. It provides competition to Fannie Mae and provides funds availability in the secondary mortgage market. What is Fannie Mae's and Freddie Mac's Role? Fannie Mae’s purpose is to create a secondary market for the purchase and sale of mortgages.  The secondary mortgage market  is where home loans and s

How to Use Home Equity for Remodeling Projects

Important Guide How to Use Home Equity Everyone has to live somewhere and, everyone has to invest their money in someplace. So what happens when where you live, meets up with where your money is invested? Today we are going to discuss on  how to use home equity  for remodeling projects and things to know before using it for remodeling. For most homeowners, it is a choice between paying cash or borrowing against the equity that they have build up in their home. HELOC Or HEL? Interest rates  are still significantly low, and we are not sure how long they are going to stay that way. And home values are still rising at least on average. So taking out a home equity line of credit (HELOC) or a Home equity loan (HEL) may seem like a sensible financial move. Not always the case We have explained the difference between the HELOC and HEL in our blog post “ About Home Equity Loan  /  Home Equity Line Of Credit .” It depends on the individual’s needs to choose between t