 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: Income and Assets\n-----------------\nThis section of the application demonstrates your ability to repay your loan. Your lender will zero in on your past and current job situation, including how long you've been at your job, and will likely verify your answers with your employers. Beyond that, you may be asked how long you've been working in your industry. Whether you work for an employer or for yourself, most lenders will want to see steady income for a minimum of two years.\nYour gross monthly income is an important number. This represents your earnings before taxes and other deductions are taken out. While your pay stubs and W-2s may reflect this, you may also be asked to provide bank statements to substantiate any other incoming funds—especially large amounts. This is to ensure that you aren't borrowing money for your down payment. If you are, this amount will count toward your debts. (More on this shortly.) If money is being gifted to you, the person providing it will have to complete and sign a gift letter supplied by the lender.\nIf you're retired or living on passive income, you'll still need to demonstrate that your income is reliable. Be ready to provide proof of retirement account balances, Social Security documentation and any paperwork related to annuities or pensions that you draw on for income. This includes any income generated by rental properties, capital gains and dividend stocks.\n### Documents You'll Likely Need\nFor all borrowers listed on application:\n*   Recent pay stubs\n*   W-2 forms from the past two years\n*   If self-employed:\n    *   Year-to-date profit and loss statement\n    *   Documents to show unpaid accounts receivable\n*   1099 forms from past two years\n*   Bank statements for all your checking and savings accounts\n*   Statements for all investment accounts, including:\n    *   401(k)s\n    *   IRAs\n    *   CDs\n    *   Brokerage accounts\n*   Accumulated cash value from life insurance, if applicable\n*   Down payment gift letters, if applicable\n*   Alimony and child support, if applicable\n*   If you have income from a rental property:\n    *   Documentation of rental income\n    *   Copy of lease\n    *   Property appraisal report END