MortgageCast

A gift letter is required if you are using gifted funds for your down payment or closing costs. It must be signed by the donor and state their relationship to you, the gift amount, that it does not need to be repaid, and the source of their funds. You will also need to provide the donor’s bank statement showing the funds.

You will need to provide extensive documentation, typically including:
Proof of Income: Pay stubs, W-2s, and tax returns (last two years).
Proof of Assets: Bank statements, investment account statements.
Employment Verification: Contact from the underwriter to your employer.
Credit History: The underwriter will pull your credit report.
Property Details: The purchase agreement and the appraisal report.
Explanations: Letters of explanation for any financial irregularities, like large deposits or gaps in employment.

Customer service is a key differentiator. Credit unions consistently rank higher in customer satisfaction surveys. They are member-focused and often provide a more personalized, community-oriented experience. Banks, especially large ones, can feel more impersonal and bureaucratic, though they may offer more robust 24/7 digital support.

If you are married filing separately, the mortgage debt limit is halved to $375,000 each. Furthermore, you must both agree on how to split the mortgage interest deduction, and you must both itemize your deductions—you cannot have one spouse itemize and the other take the standard deduction.