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Documents Needed To Refinance A Mortgage: A Complete Guide

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Published on March 22, 2022
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If you’re thinking about refinancing your mortgage, it’s good to be prepared.

After all, refinances can take a month or two to complete, and delays in getting your lender the information they need from you can stretch that timeline even further. Having all your documentation ready can help the process run more smoothly.

What documents are necessary for a mortgage refinance? Let’s go over the basics of what most borrowers will need to provide, whether they want to reduce their monthly payment, pay off their mortgage faster or get.

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Mortgage Refinance Document Checklist

When you apply for a refinance, your lender needs certain documentation to approve you for the home loan. This documentation may vary depending on the lender you’re working with, the type of refinance you’re seeking and your personal financial situation.

In the sections below, we’ll take a closer look at some of the items you’ll typically be asked to provide.

Pay Stubs

Lenders want to confirm that you’re bringing in enough income to afford the mortgage. You and anyone else who will be a co-borrower on the loan (a partner or spouse, in all likelihood) will be required to provide pay stubs from the past 30 days.

If you’re self-employed and need to verify your income, you must have copies of your last two federal income tax returns as well as profit-and-loss statements depending on the loan type.

Start preparing now by locating and making copies of all of these documents – which you’ll want to have ready to go.

Tax Returns, W-2s And 1099s

To verify past employment and income history, your lender will also require you to submit copies of your tax returns, W-2s and/or 1099s. Typically, lenders ask for 2 years’ worth of information.

Your lender will use these documents to verify your salary and see how much your earnings fluctuate from year to year.

Homeowners Insurance

You’ll need a copy of your homeowners insurance policy to verify you have current and sufficient coverage on your home.

Asset Statements

Just like when you bought your home and applied for your current mortgage, your lender will need to verify that you have enough cash to cover closing costs (if you can’t roll them into your loan) and, if required, at least 2 months’ worth of your new mortgage payments.

You’ll need to provide recent statements from:

  • Checking and/or savings accounts
  • Retirement accounts
  • Investment accounts

Debt Statements

Your lender might ask for verification of debts or other expenses you’re currently paying. Lenders will take your debt-to-income ratio (DTI) into consideration, as it helps them determine your ability to afford your mortgage.

In particular, they’ll want to verify the details of your current mortgage, and they may ask you to provide a recent mortgage statement. The lender could also require documentation related to other outstanding loans, including a home equity loan, student loan or credit card. You should have recent statements from all these accounts close by when you apply to refinance.

Additional Documents

Depending on your lender’s rules or your particular financial situation, you may be asked to provide additional documentation.

For example, if your bank statements show you recently made a large deposit, you’ll need to explain where that came from. If a family member gifted you the funds to cover your closing costs, they’ll need to write a letter verifying that.

Additional documentation you may need includes:

  • Letters of explanation that address past credit issues or gaps in employment
  • Documentation of any child support payments or alimony payments
  • Proof of any rental income you’ve collected from investment properties
  • A gift letter or other documentation verifying where recent bank deposits came from
  • Documentation in connection with a bankruptcy that’s been discharged

What Documents Do I Need To Refinance My Mortgage At Closing?

As you head to your refinance closing, be sure to bring your Closing Disclosure form, the funds needed to close (typically in the form of a cashier’s check) and a driver’s license or government-issued photo ID.

To close on your loan, you’ll sign a few documents, including a mortgage note and a mortgage or deed of trust.

The Bottom Line: Have Your Documents Prepared Before Applying For A Refinance

Getting a mortgage in the timeliest manner possible can be a bit challenging if you’re not prepared. Having your documentation readily available ahead of time can make your life a lot easier and help your lender move more efficiently.

Are you ready to apply for a refinance? Get started with us today.

View Your Refinancing Options

See recommended refinance options and customize them to fit your budget.

Start Your Refinance Online
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Molly Grace

Molly Grace is a staff writer focusing on mortgages, personal finance and homeownership. She has a B.A. in journalism from Indiana University. You can follow her on Twitter @themollygrace.