What Documents Do You Need to Apply for a Mortgage?

If you’re planning to buy a home, you’re likely preparing by saving for a down payment and shopping for the right floor plan and location. But another important way to prepare for the homebuying process is to start gathering all the documents you’ll need to apply for a mortgage. 

Almost one-third of mortgage applicants (31%) faced at least one denial in 2024, according to Zillow data. When you’re fully prepared with all the right documents ready and available, that may help you avoid a denial. Here’s a look at the documents to gather before you apply.

Keep in mind that document requirements vary by lender and loan type. This guide covers the most common requirements — your lender may ask for more or fewer documents depending on your specific situation.

Proof of Identity

First, you’ll need to provide your lender with a government-issued form of photo identification, such as a driver’s license or passport. You’ll also be asked to provide your Social Security number. Some lenders require you to provide two forms of ID. If you don’t have a Social Security number, your lender may accept an Individual Taxpayer Identification Number (ITIN) instead.

Lenders require official proof of your identity to verify who you are, and they need your Social Security number to obtain a credit report. Your credit score is one of the key factors lenders use to determine whether you qualify and what interest rate you’ll receive.

Proof of Income

Your mortgage lender will also require proof of income. Lenders don’t want to take the risk of making a mortgage loan that is likely to go into default, so they need to know that you have enough income to make your mortgage payments. Your lender will also calculate your debt-to-income ratio (DTI) — the share of your gross monthly income that goes toward debt payments. Many lenders prefer a DTI ratio of 43% or lower.

The way you document your income will depend on whether you are a full-time employee, a self-employed worker, or retired. Most borrowers are employed and provide proof of income in the form of pay stubs from the most recent 30 to 60 days, as well as W-2 forms from the past two years.

If you are self-employed or have other forms of income, you may be able to show proof of income by providing federal tax returns from the past two years, including all pages and schedules. If applicable, you may also provide 1099 forms, a Social Security award letter, pension or retirement income documentation, or rental income documentation.

Documents for Self-Employed Borrowers

While employed borrowers can simply submit pay stubs and W-2 forms, mortgages for self-employed borrowers are not quite as straightforward. If you’re self-employed, you will likely need to provide your lender with more extensive documentation, such as:

• Two years of personal tax returns, including all schedules
• Two years of business tax returns
• Year-to-date profit and loss statement
• Business license or official proof of ownership
• 12–24 months of business and/or personal bank statements

Proof of Assets

In addition to providing proof of regular monthly income, mortgage borrowers may also have to submit proof of existing assets. That includes any cash accounts or investment accounts you own. For example, your lender may expect you to provide:

• Statements from checking and savings accounts for the past two to three months
• Statements from investment and retirement accounts

If you’re using gifted funds for a down payment, you’ll need to provide a gift letter. This is a letter that confirms the money is a gift rather than a loan and identifies the giver.

Your lender will also want to confirm you have enough funds to cover closing costs in addition to your down payment. This is sometimes called “cash to close.” Having your account statements current and readily available will help this process move quickly.

Employment Verification

The next set of documents is intended to verify your employment, typically for the past two years. You’ll likely be asked for the name and contact information for your employer or employers over that period.

Some lenders will contact the employer directly to verify your employment. Others may ask you to have your employer complete a Verification of Employment (VOE) form. A VOE is a standardized document that includes basic information such as your employer’s contact details, your start date, and your historical earnings.

Pre-Qualifying vs. Pre-Approval: What’s Different?

Taking time to gather all the necessary documentation early can significantly speed up the process of getting a mortgage loan. When you have all your documents in order, you may be able to get pre-approved for a mortgage.

Pre-qualifying for a mortgage is a lighter process and doesn’t require you to submit all the necessary documentation. To be pre-qualified, you just need to submit income estimates and basic financial information. The lender will do a credit check to make sure your score qualifies, but pre-qualification does not necessarily mean you’ll be approved for the mortgage loan.

Pre-approval, on the other hand, requires full document submission. To be pre-approved by a mortgage lender, you must submit proof of income, proof of assets, and proof of employment. Because pre-approval is the final step before actually obtaining the mortgage loan, it carries more weight in the eyes of a home seller.  

When you find the home you want and are ready to make an offer, having a mortgage pre-approval letter may help you win the bid. It’s wise to gather your necessary documents early so that you can be pre-approved faster and be prepared to make an offer when you find the right home.

Documents You’ll Need at Closing

Most of the documents needed for a mortgage loan must be submitted when you apply for the mortgage. But there are some documents you’ll have to obtain after approval and before closing on your home, including:

• Closing disclosure: Issued by the closing lender three business days before closing, this form itemizes the final loan terms, interest rate, closing costs, and fees. Review it to make sure everything is correct.
• Homeowners insurance confirmation: You’ll need to choose a home insurer and obtain an insurance policy that will go into effect at closing.
• Signed purchase and sale agreement: This is the contract you and the seller signed when you agreed on terms for the purchase of the home.
• Photo identification: Both buyer and seller will need to provide government-issued photo ID at closing.
• Deed and title documents: These will be provided by the title company or the closing attorney and will confirm your ownership of the new home.

To learn more about buying a home, contact an RBC U.S. Mortgage loan officer today.