What documents are required to apply for a mortgage ?

What You Need to Apply for a Mortgage

When you apply for a mortgage, you’ll need to provide information about your employment and financial history. Having this information ready ahead of time will help the process move ahead quickly.

To help you get started, here’s a list of everything we’ll need for all borrowers:

  • Date of birth
  • Social Security Number
  • 2-year address history
  • 2-year work history
  • Gross monthly income to be used for qualifying for a mortgage
  • Any other income to be considered for qualifying
  • Deposit account and asset information held by financial institutions
  • Current tax, homeowners/condo dues, insurance and lien information
  • Additional documentation about your income, if you’re self-employed.

Additional information may be needed based on the type of mortgage you’re applying for. VA Loan applicants will need to provide a Certificate of Eligibility.

You’ll also need to provide the following information about the residence you’re purchasing:

  • Purchase price
  • Loan amount
  • Estimated homeowners/condo association dues, on property
  • Type of property
  • Property address
  • Source of down payment

How to Buy a House With a 1099?

If you’re an independent contractor in the market for a new home, you may find it challenging to qualify for a traditional mortgage. This is especially true if you take write-offs at tax time since most loan programs only consider your net income when determining if you’re a good fit for a mortgage.

Still, it’s possible to get the financing you need without having to jump through hoops. Furthermore, there are specialized home loan products available to 1099 workers.

Yes, it’s possible to qualify for a home loan using 1099 earnings statements in place of income tax returns if you’ve been employed as a contractor for the past two years.

A 1099 worker is not classified as an employee but completes assignments or jobs for an employer. Self-employed individuals, freelancers, independent contractors, consultants and gig workers are all considered 1099 workers.

You may find it to be a bit more difficult to get a mortgage with a 1099. However, you can connect with a lender and get pre-qualified to learn more about the eligibility requirements and gauge your approval odds.

What Documents Will You Need to Provide as a 1099 Worker When Buying a House?

Before applying for a mortgage, gather the following documents to avoid processing delays:

  • 1099 forms for the past two years
  • Tax returns for the past two years (including Schedule, Schedule SE and all other applicable forms)
  • A copy of your business license (if applicable)
  • Business financial statements (including the balance sheet and profit and loss statement)
  • Bank statements for the past three months
  • Gift letter if you’re receiving a monetary donation from a relative or friend for the down payment
  • Any other income documentation (i.e., paystubs and W-2 forms if you’re employed elsewhere)