refinance a mortgage

The Documents That Are Needed to Refinance a Mortgage

Refinancing a mortgage is similar to buying a new home in that you’re signing up for a brand new loan agreement. So why all the paperwork if you’ve already submitted it to close on your home loan in the first place? The biggest reason is to make sure you still qualify for a loan. Here are the documents that are needed to refinance a mortgage.

The Documents That Are Needed to Refinance a Mortgage

Pay stubs

Similar to when you initially closed on your home loan, your lender wants to see at least two pay stubs from your employer. This helps indicate if you’re going to be able to successfully repay the loan. Since this category varies by lender, make sure to ask how far back you need to go with proof of income. If you are self-employed, you will likely need to show profit and loss statements and federal tax returns in the place of pay stubs.

Tax returns

Whether you get W-2s or 1099s each year, you’ll also need to provide tax returns. These documents show trends in your earnings and gives your lender a good idea of your financial situation. This income information can impact the refinancing options available to you. It’s more beneficial to show an upward trend in your income to give you the largest options for refinancing.


Lenders want to see your list of assets to determine if you have enough collateral on hand to cover a couple months’ worth of house payments, as well as any down payments or closing costs. These assets may include, banks accounts, 401K, other retirement funds such as IRAs, mutual funds, bonds, stocks, life insurance, etc.

Credit check

Your credit score may have changed since you first closed on your home, so your lender will need an up to date credit evaluation before approving your refinance. If you’ve been successfully paying your home loan so far, your credit has likely increased, and the higher your credit score, the lower your interest rate. So it’s beneficial to you to get an updated credit check.

Additional documents

Depending on your situation, your lender may request additional documents from you. These documents can include letters of explanation, verification of employment, and gift letters. Now that you have the list of documents needed to refinance a mortgage, you’re able to assess if you’re ready to refinance a mortgage.

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