Mortgage Application Checklist: Everything You Need To Start Your Mortgage

Buying a home? Congrats! Getting a mortgage prepped and approved is one of the biggest and most important steps in the process – and it can feel a little overwhelming.

Good news: We’ve got you covered. This mortgage application checklist will help you BE PREPARED and get one step closer to holding the keys to your new home!

Navigate to Where You Want to Go:

1. Proof of Income & Employment
2. Proof of Assets
3. Credit History & Debt Information
4. Residential History
5. Extra Documentation
6. After You Submit an Application

Mortgage Application Checklist: What You Need to Apply

1. Proof of Income & Employment

Lenders want to see how much money you make and whether you have a stable job. Here’s what they typically ask for:

• Pay stubs - last 30–60 days
• W-2 forms - last two years
• Tax returns - last two years,
• Employment verification letter - sometimes required to confirm your job status

Why It Matters: Your lender needs to verify your income to ensure you can handle a mortgage payment. If you’re self-employed, expect to provide extra documentation like tax returns, business bank statements, and possibly a CPA letter.

Pro Tip: If you’ve had job changes in the past two years, be ready to explain them. Stability = confidence for lenders.

2. Proof of Assets

Lenders also want to see what kind of savings or investments you have. These documents help prove you can cover your down payment, closing costs, and unexpected expenses.

• Bank statements - ALL PAGES of checking and savings – last 2 months
• Investment account statements - Most recent Quarter or last 2 months - stocks, bonds, retirement accounts, etc.
• Gift letter - if you’re using gift money from family for your down payment

Why It Matters: Showing your liquid assets (money you can access quickly) gives lenders confidence that you’re financially prepared.

Pro Tip: Large recent deposits? Be ready to explain them. Lenders check for unusual transactions to ensure money is from legitimate sources.

3. Credit History & Debt Information

Your credit score and debt situation play a huge role in mortgage approval. Lenders will look at:

• Credit report and credit score - they’ll pull this, but it’s good to check in advance! Curious about credit? Learn more here: Understanding Credit Scores
• List of current debts - car loans, student loans, personal loans, credit cards, etc.
• Monthly debt payments - they calculate your Debt-to-Income (DTI) ratio

Why It Matters: A higher credit score = better mortgage rates. If you have a lot of debt, lenders may limit the amount you can borrow.

Pro Tip: Check your credit report using a credit monitoring tool before applying! If there are errors or old debts, fix them before lenders pull your report.

4. Residential History

Lenders want to know where you’ve lived and how you’ve handled past housing payments.

• Rent payment history - if you don’t currently own a home
• Landlord contact information - for rental verification
• Mortgage statements - if you already own property

Why It Matters: If you’ve been paying rent or a mortgage on time, that’s a great sign for lenders. Late payments? You may need to explain them.

Pro Tip: If you’ve moved a lot, be prepared to provide addresses for at least two years.

Bonus: Extra Documents That May Be Required

• Identification – Government-issued ID (driver’s license or passport)
• Divorce decree – If applicable, to verify alimony/child support payments
• Bankruptcy/discharge papers – If you’ve filed for bankruptcy in the past
• Gift money proof – A formal letter from the donor explaining the gift

Pro Tip: Different lenders may ask for different things. Staying organized upfront can speed up the approval process!

What Happens After You Submit Your Application?

Once you’ve sent in your documents, here’s what happens next:

• Lender Review - They’ll verify everything and check your credit.
• Questions and Follow-Ups - They might request more details or updated statements.
• Pre-Approval or Conditional Approval - If approved, you’ll get a loan estimate and can start house shopping!

During this time, it’s important that you avoid a few common mistakes, which could delay or change your mortgage approval:

• Avoid large purchases
• Don’t deposit large amounts of cash into your bank accounts.
• Don’t co-sign any loans for others
• Don’t change bank accounts
• Don’t apply for new credit
• Don’t close any credit accounts

Ready to Apply for a Mortgage? We’re Here to Help!

Getting a mortgage doesn’t have to be stressful—being prepared is half the battle. Having these documents ready to go can make the process smoother and get you to your new home faster.

Still have questions? Talk to a mortgage expert at MidWestOne Bank—we’ll walk you through every step!

Start Your Mortgage Journey Today