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When you decide to refinance your mortgage, you are going to have to have documentation to attach to the application the lender sends you in order to be approved for the refinance. You will benefit from the refinance by gaining a lower monthly payment on your mortgage and you will do this by getting a lower rate of interest on your refinance note than you have on your current mortgage. When you took out the initial mortgage you supplied the lender with paperwork to support the application. When you apply for a refinance you will be supplying much the same documentation as you did with the first loan.

Let’s look at the insurance documentation that you will need first. You need to find the current policy you have for casualty insurance. This is the insurance that you purchased to protect your investment in case of storm damage, damage from flooding, a fire, or any other disaster that might cause property damage. You will have to show proof that you have enough insurance on the dwelling to protect your investment. Another insurance you may have is title insurance. You would have purchased this when you bought your house to ensure that any defects in the title that were not caught when the title was researched will cover your investment in the home.

You are responsible for paying income tax on your earnings. You file a personal income tax return at the end of every tax year. This is often required by the lender as proof of income. The income tax return has copies of the earnings statements paid by your employer. This will verify your income to the lender. If you are self-employed you will have to have business income tax returns and personal income tax returns for the past two years.
In addition to the above requirement for income information you will also need to have pay stubs for the lender to review. The amount of time for the pay stubs to cover will vary from lender to lender. You can show other income from child support, alimony, rental property income, and other sources. Again, if you are self-employed the rules change. You may have to provide financial statements from the business, the tax returns from the business and other profit/loss statements for the lender to review.

Not only will you need documents that support your income, you will also need documents that are proof of your assets. If you have savings accounts, retirement accounts, life insurances, stocks, and other forms of assets the lender may require information on them. This list is not all inclusive. You may have other assets I have not listed.

Some of the other documentation that you might have to provide is your property deed, your proof of school attendance, your Social Security Number, and any other documents the lender requests that you provide in order to qualify for the refinance loan. The lender will give you a checklist at the beginning of the refinance process. Make sure that you review it carefully and ensure that you have included all the documents requested.