Documents Needed for MN Home Loan Approval

Documents Needed for MN Home Loan Approval

Applying for a home loan in Minnesota requires more than just filling out an application. Lenders need to verify your financial stability, employment history, and identity before approving your mortgage. Having the right documents ready can speed up the process and prevent delays in your path to homeownership.

This guide outlines the documents Minnesota borrowers typically need for mortgage approval, along with tips for staying organized.

Why Do Lenders Require Documentation?

Mortgage lenders must assess risk before offering a loan. By reviewing income, assets, debts, and identification, they ensure you can repay the mortgage responsibly. Documentation also helps determine which loan program and terms are best for your financial situation.

What Income Documents Do You Need?

Pay Stubs and W-2 Forms

Most Minnesota lenders require your last 30 days of pay stubs and the last two years of W-2 forms to confirm stable employment.

Tax Returns for Self-Employed Borrowers

If you’re self-employed, expect to provide two years of full federal tax returns, profit-and-loss statements, and possibly business bank statements.

What Employment Verification Is Required?

Lenders often contact your employer directly to verify your current status, income, and length of employment. If you’ve recently changed jobs, you may need to provide an offer letter or contract to confirm ongoing stability.

What Asset Documents Are Needed?

Bank Statements

Lenders typically ask for two to three months of recent bank statements. These show you have sufficient funds for a down payment, closing costs, and reserves.

Investment and Retirement Accounts

Statements for accounts such as 401(k)s, IRAs, or brokerage accounts may also be requested if you plan to use them for funds or to demonstrate financial strength.

What Debt and Liability Information Must Be Provided?

Expect to provide information on existing debts, including:

• Credit card statements 
• Auto loan balances 
• Student loans 
• Other monthly obligations 

Lenders use this to calculate your debt-to-income ratio, a key factor in loan approval.

What Identification and Legal Documents Are Required?

Government-Issued Identification

A valid driver’s license, state ID, or passport confirms your identity.

Social Security Number

Your SSN allows the lender to pull your credit report and verify your financial history.

Proof of Residency or Immigration Status

Non-citizens may need to provide additional documentation such as green cards or visas.

Are Property Documents Required Before Closing?

Yes, once you’ve chosen a property, your lender will request:

• A signed purchase agreement 
• Proof of homeowners insurance 
• Title documents provided by the title company 

These documents ensure the property is insurable, legally transferable, and aligned with loan requirements.

Do VA, FHA, or USDA Loans Require Additional Documents?

VA Loans

• Certificate of Eligibility (COE) 
• Statement of service or DD Form 214 

FHA Loans

• Additional documentation for down payment assistance 
• Proof of FHA loan requirements met 

USDA Loans

• Proof of property eligibility 
• Income verification for program limits

How Long Should You Keep Financial Records?

It’s a good idea to keep at least two years of tax records, bank statements, and pay stubs. Staying organized allows for quick responses to lender requests and helps with future refinancing or financial planning.

Get Mortgage Guidance and Support in Minnesota

Gathering documents is easier when you know exactly what lenders expect. At Refined Lending, we guide Minnesota borrowers step by step through the approval process, making sure nothing is overlooked.

Contact Refined Lending today and let our team help you prepare the right documents for a smooth home loan approval.