Know the Mortgage Loan Requirements Before Buying a Home

Generally, mortgage loan requirements are not very complicated, but getting a mortgage can be quite a bit of work. Accurate and organized financial records can greatly simplify this process. Make a usual habit of keeping all records of your financial history in one easily located place. A strongbox or file cabinet is perfect for this purpose.

For many reasons, you have probably already kept copies of your tax returns. These will be needed when applying for mortgage loan. This is the best record of your income history.

You will need copies of all bank statements for at least the previous two months, and sometimes more. This will include all checking, savings, retirement, and any other financial account that you hold.


You will be required to provide the name, address, telephone number, and any other pertinent information about your employer. If you are self-employed, you will need to provide all 1099 forms. This will show your overall profit for the year, before you have deducted your expenses.

If you are retired, and receive your income from Social Security, pension, or another source, you can not be denied a mortgage loan, as long as your debt to income ratio is appropriate. A bank will expect you to provide accurate documentation of the source of your income.

More often than not, you will be expected to have a certain amount of money dedicated as a down payment. A portion of this money may be held in escrow. This will ensure that all necessary taxes and insurance will be paid.

You may be asked for copies of both your Social Security card and your drivers license. These will be added to, and kept in your mortgage file.

As you can see, the requirements for a mortgage loan are not complicated, however accurate record keeping will certainly simplify this matter.