Mortgage Applications: How to Document Income and Assets

It's important that  mortgage applications be completed accurately because the applicant will be asked to provide written documentation of everything he or she has stated on the application.

Income and assets play a major role in determining a borrowers ability to repay the loan. The borrower can prove the income stated on the application by providing their last two years W-2 statements and pay stubs dated within the last 30 days. In some instances the lender will go directly to the borrowers employer for a written or verbal verification of employment. Self employed borrowers are asked to provide personal and business tax returns to cover the last two years. If the borrower own property a lease agreement can be provided to verify income received from that particular property. Assets can be proven by providing statement from the borrowers bank, 401k provider or insurance holder. The statements must be dated within the last 30 days. If they are provided quarterly it must be the most recent quarter. The lender can go directly to the borrowers bank for verification if the documents are out dated with written authorization from the borrower. Other forms of asset documentation are vehicle or boat titles, property deeds, receipts for jewelry and a HUD-1 Settlement state from the sale of a property.