• Pull out your vital documents folder—you may need to make some photocopies.documents image by AGITA LEIMANE from Fotolia.com
  
  A mortgage process can be long and arduous. In addition, mortgage lenders often ask for many types of documents from a homeowner. These documents relate to a borrower's income, employment, residence history, tax history, banking history, credit history and insurance coverage. In order to compare several mortgage loans side by side, a consumer must provide just enough documentation to secure a pre-approval.
  
  

Income Documents

• Documents corroborating a borrower's stated income are often the most crucial. Documents needed for a pre-approval on a mortgage loan are at least two consecutive pay stubs and the most recent W-2. If a borrower is self-employed, a lender will need to see either 12 months' bank statements (to average the deposits) or the last two years of business tax returns (to review profit/loss from the business). Loan officers will used these documents to confirm that the borrower has the financial ability to repay the mortgage loan.
  
  

Insurance Documents

• Lenders will not finance any new mortgage on a property that is not covered by a comprehensive homeowners insurance policy. Borrowers seeking a mortgage must first secure this coverage. In order to get a pre-approval from any lender, the borrower must submit either the policy itself, or the insurance binder breaking down the insurance coverages. In most cases, a lender will want to see at least sufficient dwelling and replacement cost coverages.
  
  

Credit Documents

• All lenders use credit to determine interest rates and fees on mortgage loans. While a lender will likely pull a borrower's credit report from a third-party service, some additional documents may be required. For example, if a borrower recently exited a court-monitored Chapter 13 bankruptcy program, a lender will need to see the reaffirmation agreements from all creditors. In addition, many lenders will want a personal explanation letter from any borrower who has significant credit problems.