There are several things you can do to figure out how much mortgage you can afford, including calculating a realistic budget before purchasing a home.
Summary: When applying for a home loan in Washington State, you’ll need to provide a variety of different documents pertaining to your assets, income, and debts. Mortgage companies use them to help verify your financial situation, and also for underwriting purposes. We’ll discuss what these are in this article.
The exact documents needed for a mortgage loan in Washington can vary from one lender to the next. The type of home loan you’re using will also affect your documentation and paperwork requirements.
With that being said, there are certain documents that almost all mortgage companies look for, no matter what kind of loan is being used. Here’s a list of commonly required documentation.
Related: Basic requirements to buy a house
Washington State Mortgage Loan Document List
This list is not meant to be exhaustive or all-inclusive. But it does give you some insight into the kinds of documents you’ll need when applying for a home loan in Washington State.
- Asset-related paperwork. Borrowers usually have to provide a list of assets, including retirement accounts, investments, mutual funds, real estate, etc. These are commonly requested mortgage documents in Washington.
- Bank statements. Be prepared to provide copies of your recent bank statements, when applying for a home loan. Lenders use these to see how much money you have in the bank, and to ensure that you can cover your estimated closing costs, down payment, and other expenses.
- Credit reports. Your credit reports and scores show how you have borrowed and repaid money in the past, which makes them relevant during the mortgage application and underwriting process. Mortgage companies usually request this information directly from the source (credit reporting bureaus), so you won’t have to provide them yourself. It’s just something to be aware of.
- Debts. Will you be able to manage your debts with the addition of mortgage payments? This is an important question. To answer it, lenders will request a list of your recurring debts, including credit cards, personal loans, car loans, etc. This is another common mortgage document requirement in Washington State.
- Gift letters. These days, many loan programs allow borrowers to use money provided by a third party (like a family member or employer) to cover the down payment expense. If you go this route, you’ll have to obtain a gift letter from the donor that states they do not expect repayment. Learn more about down payment gifts.
- Pay stubs. Your paycheck stubs are used to verify your current employment status and earnings. In most cases, lenders want to see the two most recent pay stubs, or enough to cover a full 30-day period. But this can vary.
- Purchase agreement. Once you’ve signed a purchase agreement/contract with the seller, you’ll need to provide a copy of that document to your lender. You won’t have this mortgage document when you get pre-approved for a loan. But you’ll need to submit it for underwriting purposes, prior to closing.
- Residences. This is a straightforward document requirement, so there’s not much to say about it. When applying for a mortgage loan in Washington State, you’ll need to provide a list of residential addresses for the last few years. The exact length of time can vary.
- Tax returns. Your tax returns are used to verify your annual income, which is an important part of the underwriting process. This is another commonly requested mortgage document in Washington State. All lenders request these. Expect to provide tax returns for the last couple of years.
- W-2 statements. Like the tax returns mentioned above, W-2 forms are used to verify the borrower’s income.
Related: Mortgage requirements in Washington
Notes: Some of the mortgage documents on this list might not be applicable to your situation. You might also be asked for additional items that are not listed above. Documentation requirements vary based on the type of home loan being used, the borrower’s financial situation, and other factors. This article is meant to give you an overview of commonly requested mortgage documents in Washington.
Have Questions About Mortgage Loan Documents?
Whether you want to know more about what it takes to apply for a mortgage or are ready to apply for one, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as Idaho, Colorado, and Oregon. We offer many mortgage programs to borrowers, and have been doing so since 1992. Please contact us if you have mortgage-related questions.