In addition to filling out your mortgage application you will need to provide documents verifying that the information is correct. Supporting documentation can be anything from a bank statement to a receipt, and some supporting documents may prove to trickier than others.

If you would like to use a gift as the source of your home down payment, you need to provide the contact information of the giver as well as the person’s relationship to you. This person must be either related to you or be your co-borrower in order for the gift to be allowed for the down payment. Once the gift funds have been transferred to you before closing, all you need to do is show a bank receipt or deposit slip of the funds deposited into your account.

If you are selling your previous/current home to purchase your new home, you will need to provide a closing statement or copy of the settlement that proves you have paid for that home in full, therefore having the funds to pay for your new home.

Many people withdraw money from a 401K account to use for their new home down payment. If this is the case you will need some evidence of the withdrawal, usually in the form of a bank statement. If repayment is required it will probably be considered a monthly payment when we are assessing your finances during our loan decision.

If you borrow money to make your down payment they must be secured by an asset or something you own. For example, with a home loan or an auto loan you are borrowing against your home or your car.

If you are obtaining a loan against something valuable that you own (collateral,) that is a perfectly acceptable method for making your down payment. However, if you are borrowing money to make the down payment but have nothing valuable to offer as loan insurance, this may not be approved in the same way.

In terms of debt you must list on your mortgage application, generally co-signed debt is stated and considered. If you are approved for a mortgage, that is great. If you are not approved for reason of co-signed debt, there can also be solutions. The monthly payment of the co-signed debt can be ignored if you can show proof that the other person responsible for the debt has made the proper payments.