Documents Needed to Refinance Your Home

Do you know what mortgage refinancing documents are needed to apply? 

These are the documents:

  • Paystubs
  • Tax Returns, W-2s, and/or 1099s
  • Credit Report
  • Statement of Debts
  • Statement of Assets

What if I Do Not Have All the Documents Required for a Refi?

Sometimes a homeowner cannot produce the required documents to apply for refinancing. If you’re too busy to locate your copies, or if you’ve lost them (it happens!) and you don’t have time to obtain replacements, you may not feel a refi is worth the hassle. What then?

Well, there’s another option called a Streamline Refinancing for government-backed loans that may be what you’re looking for. A Streamlined Refi is designed to save time and money by expediting the refinance process. With VAFHA, USDA or other government-backed loans, you may not need all of the documentation typically required to qualify for a Streamline Refinance.

If you have a government-backed mortgage and would like to explore your refi options with fewer documentation requirements, send a message or give us a call.

Refinance Required Documentation Checklist

If your loan is not government-backed, you will need to produce all of the standard documentation. Review this checklist to make sure you have all of the required documents to apply for mortgage refinancing.

1. Pay Stubs
When applying for a home loan refinance, your lender will need proof of income. Lenders want to ensure that you have the financial means to pay off your new mortgage, as well as any other long-term debts (such as car loans) or other living expenses.

As a result, borrowers are generally required to submit recent pay stubs from the past 2-3 months. So, be sure to make copies of all these documents and keep the originals in a safe place.

If you are self-employed, your lender may also require a little more information to verify your source of income. Copies of your last two federal income tax returns, as well as profit-and-loss statements may be requested for review.

2. Tax Returns and W-2s and/or 1099s
To provide further proof of employment and income, be sure to prepare copies of your last W-2 and/or 1099 statements and tax returns. Typically, lenders will ask for two years’ worth of information.

Remember, a W-2 form is used by company employees. This form shows a person’s income and how much of the money was taken out for taxes. In contrast, a 1099-MISC is used by independent contractors or the self-employed. This form shows a person’s income, but does not show how much money was taken out for taxes.

These documents are important because they not only verify your salary but also show trends in your earnings, as well as details about investment gains or losses. Most importantly, this information can affect your total income level and subsequent loan approval amount, as calculated by the lender.

3. Credit Report
Before you are approved for a refinance, lenders will perform a credit check. While each loan program may have its own minimum credit score requirement, it’s always better to be safe than sorry. So, even if you are just considering refinancing, it is never too early to check all three FICO scores to make sure that you’re on the right track.

By taking this precautionary step, you have the opportunity to review your credit rating before your lender does. And, you get the chance to take care of any necessary credit repair work. This means getting rid of those extra credit cards you don’t really need, paying down your account balances and making sure you pay all your bills on time from this point forward. Remember, the best refinance rates are almost always reserved for the borrowers with the best credit.

4. Statements of Outstanding Debt
Even though your lender will be able to see your existing debts via your credit report, you will still have to provide documentation detailing your current outstanding financial obligations. You will need to gather account statements on all remaining debts, including your existing mortgage, home equity lines of credit, car loans and student loans.

5. Statement of Assets
Just as when you first purchased your home, your lender will want to verify that you have enough cash in your savings accounts to cover any out-of-pocket closing costs and at least two months’ worth of mortgage payments.

Therefore, copies of statements for saving accounts, retirement account, stocks, bonds and certificates of deposits will also be needed. All of these documents will provide proof of any additional assets you own in addition to your regular salary.

The advantages of collecting these documents before shopping for lenders is twofold: it not only allows borrowers to truly assess their refinancing readiness, it is also likely to help them score a better refinancing deal later on down the line.

Your Refi Checklist Is Complete, What’s Next?

Now, that you’ve set your goals, gathered all of the necessary documents and decided whether a mortgage refinancing makes sense for you, it’s time to move forward with the application process. Contact Us Now by email at or by phone 305-742-8179 to make an appointment or and get start the path to your successful refinancing.