Documents Needed To Refinance

Knowing the documents needed to refinance your mortgage before you move forward with your loan application will allow for a better overall experience.

A lower interest rate, a shorter term, or possibly cash-out funds to improve your home are all benefits of refinancing your mortgage. No matter the benefit, you should know beforehand the documents needed to refinance a mortgage.

Below we list the documents needed to refinance your home. Not every situation is the same; the list below is meant as a guide. An underwriter may request additional documentation based on your specific situation.

Documents Needed To Refinance Your Home

I will break down the documents needed to refinance your home into three categories; W-2 Employee, Self-Employed, and Retired. The reason is that each group has to provide a slightly different set of documentation.

Quickly jump to the section that matters to you;

• W-2 Employee
• Self-Employed
• Retired

Generally speaking, refinances usually take 3-4 weeks from completing an application to signing loan documents with a notary. When a second mortgage is subordinated, the time frame might be more towards 4-6 weeks.

To ensure a fast mortgage process, it’s a good idea to gather your documentation before moving forward (or at least the essential docs). The documents needed to refinance your home include some basic items you can probably find in minutes.

W-2 Employee Refinance Documentation

If you are a W-2 Employee, here is an essential list of documentation you’ll need to refinance your current mortgage:

• Most recent W-2 you received (possibly the most recent two).
• Paystubs that cover a month’s period of time.
• Contact information for your homeowner’s insurance agent.
• Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
• Contact information for your HOA (if you have one).
• See additional income documentation that may be required.

Self-Employed Refinance Documentation

If you are Self-Employed, here is a list of refinance documentation you’ll need to provide.

• Your most recent tax return, personal and business, with all scheduled (federal only). You may have to provide two years.
• A P&L statement for the current year, possibly one for the prior year as well (depending on when you file your returns).
• Contact information for your insurance agent.
• Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
• Contact information for your HOA (if you have one).
• See additional income documentation that may be required.

Retired Refinance Documentation

If you are retired and want to refinance your mortgage, here is a list of refinance documents you’ll need to provide.

• If you receive Social Security income, then proof of benefit and possibly proof of receipt (bank statement the money is deposited into).
• If you receive pension income, you’ll need documents similar to SS income; proof of benefit and possibly proof of receipt.
• If you own rental property, then the two most recent years of tax returns.
• Interest, dividend, and capital gains income: This requires two years of tax returns and proof that the current level of income will continue for at least three years.
• Asset Depletion is another way to qualify. For Asset Depletion, you’ll need two years of tax returns and proof of liquidation, and the “income” will continue for at least three years.
• Contact information for your HOA (if you have one).
• See additional income documentation that may be required.

Additional Refinance Documentation That May Be Required

• Liquid assets: Some mortgage loans require the borrower to have liquid asset reserves, and if so, you’ll need to provide the most recent two statements (all pages). In some cases, a mortgage company can do an asset verification which means the mortgage lender will independently verify your liquid assets.¹
• Tax returns: If you own rental property, have a side gig, or if you receive partnership income, you may have to provide your most recent two years of tax returns.
• Subordination: If you have a second mortgage and you want to subordinate, you’ll have to provide a copy of the Note from when you secured the loan.
• Legal Separation or Divorce: If you are legally separated or divorced, you’ll need to provide your separation or final divorce documentation.²
• Bankruptcy: If you’ve filed for Bankruptcy in the last seven years, you may have to provide Bankruptcy documentation to the underwriter.

Rental Properties

A quick note about rental properties. If you own rental properties, please be prepared to provide the following:

• Lease agreement(s)
• Mortgage statements and insurance information for each property.

FHA Streamline Refinance Documentation

If you have an FHA home loan currently and want to refinance into a new FHA home loan, you’re in luck! The FHA Streamline Refinance loan program is one of the best refinance loan programs in the industry. No income documentation and no appraisal.³ Super fast and super easy!

VA Streamline Refinance Documentation

Like the FHA Streamline Refinance, the VA home loan program has its own streamline refinance.

And the VA Streamline Refinance documentation needed is as simple as the FHA program. No income documentation, no appraisal, and no credit check requirements.⁴ You’ll complete the VA Streamline Refinance program in a matter of weeks.

Bank Statement Mortgage Refinance Documentation

If you are applying for the specialized Bank Statement Mortgage refinance program, you’ll need to collect the following documents before moving forward with your loan application.

• Twelve or twenty-four months of your most recent bank statements, all pages, front/back of each page.
• Contact information for your homeowner’s insurance agent.
• Copy of your monthly statement for your current mortgage. If you have a second mortgage, you’ll need to provide a statement for that as well.
• Contact information for your HOA (if you have one).
• See additional income documentation that may be required.

Bottom Line

Whether you are refinancing under a Conforming home loan program or a streamline refinance program, it’s important to discuss the refinance documentation requirements with your Loan Officer before you move forward with your Loan Application.

Most mortgage lenders will allow you to upload your refinance documentation to a secure server, email, or fax the required documentation.

Sources:

1. What are Verification of Deposit and Income Forms? – Accusystem.com
2. Why Would Mortgage Lenders Need Divorce Decree? Lawexpresion.com
3. Section C. Streamline Refinances – HUD.gov
4. VA IRRRL rates and guidelines: VA Streamline Refi 2023 – Themortgagereports.com