Mortgage Closing Paperwork - A quick review

Closing is the last part of loan seeking and it is a time when the lender formally makes a borrower formally eligible for the loan sought after verifying and signing documents submitted by the seeker.

These documents or paperwork requested by mortgage lenders would vary widely. Depending on the type of mortgage, you should be required to provide a full documentation or no documentation or medium documentation. This documentation is a written part of facts about the borrower including how much money you make each year, what are your sources of income, whether you have assets or any debts, etc.

Closing process is also called as settlement or escrow, and is mostly computerized and automated. In majority of the cases, buyers and sellers don't need to attend a specific event. A signed paperwork can be sent to the closing agent.

Here is a list of the basic documents or paperwork necessary for a successful closing on mortgage. These documents will have to submitted by the loan seeker to the prospective lender:

1. A statement mentioning last 2 years worth of W2 forms and tax returns.

2. Pay stubs with your name and SS number along with address and name of your employer.

3. A borrower should also provide the lender with a list of your previous creditors along with your debts. This list should have a mention of your credit cards, student loans if any, child support and alimony payments that if you have to do on a monthly basis.

4. A written proof of your other sources of income including mention of all jobs, any forms of commissions or salary that you receive and other investment money and benefits of retirement you earn.

5. Cancelled checks and receipts that indicate receipts of rents and payment of other mortgages should also to be submitted.

6. If you have any other forms of investments, you need to prove the amount you make from them each year. Remember that if you have any investments you are bound to get statements once in a year, and a copy of these is sufficient as a proof.

7. Automobile licenses that you possess.

8. If you have chosen house to make a deal with, get a copy of sale price offered along with sales contract.

It should be noted that if a borrower possesses a good credit history then the lender may not ask for all of these documents and he is considered as credit worthy just based on his credit report and score. If you have a poor credit score then a borrower may have to provide with all of these or part thereof of these documents.

When all paperwork is ready, it is time for settlement and the mortgage will be processed and released to the borrower within a stipulated time.