What is considered alternative documentation in the mortgage application process?

Alternative documentation in the mortgage application process refers to documents that are not typically required by lenders but can be used to verify a borrower's income, assets, or other financial information.

Some examples of alternative documentation that a lender may accept include:

1. Bank statements: This can show the borrower's cash flow and savings patterns over time.

2. Pay stubs: These show the borrower's current income and employment status.

3. Tax returns: These can show the borrower's income over the past few years.

4. Letters of explanation: These can be used to explain gaps in employment or other financial discrepancies.

5. Rental payment history: This can show that the borrower has a history of paying rent on time.

6. Investment account statements: These can show additional sources of income or assets that can be used to qualify for the loan.

It's important to note that lenders have their own criteria for what they consider acceptable alternative documentation, so it's best to check with your lender to see what they require.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.