Jun 07in GENERAL
What Kind of Paperwork You Need to Buy a Home?
Buying a home can be an exciting stage in a person’s life but getting a loan can be your worst nightmare. Attaining a loan is a long process, you need to gather documents that will be checked by an underwriter. It doesn’t end there! The underwriter might request more documents or letters of explanations that seem never-ending.
So, to make this a tad bit easier on you, we are going to lay out what you should prepare for documents before entering the loan process.
Before Talking to a Mortgage Lender:
Pull a copy of your credit report and examine it. You are entitled to a free annual credit report from each of the three credit reporting agencies.
Realize that if you have a low FICO score, you can still most likely obtain an FHA loan, which does not rely on FICO scores. FHA loans also require down payments as low as 2.85% of the sales price.
To begin processing your loan, a lender will verify your employment through a verification of employment form. Give your employer a heads-up to expect to receive that form.
Ask your human resources department to send it back right away. In addition, the lender will want the following paperwork from you:
Documentation Needed to Buy a Home
Your last two pay stubs will suffice.
This is your wage and tax statement, issued by your employer for a calendar year. It is what you attach to your tax returns. Lenders generally want the last two years of W2s from both of you.
- Federal Tax Returns
If you haven't yet filed your tax return for last year, then find the two previous years of tax returns.
- Bank Statements
Some lenders want two months, while others will demand the last three months of bank statements. Make a copy from each lending institution. Include every page of each bank statement.
- Asset Statements
If you own stocks, bonds, mutual funds or retirement accounts, make a copy of each statement. Lenders sometimes prefer hard copies over those printed online but will accept online statements if that's how you receive your statements. Make photocopies and do not send originals.
- Copy of Current Driver's License
If you are meeting with the lender in person, you can bring your driver's license with you for identification. Otherwise, copy your license on a scanner or copy machine and include it. Your license should have a photograph of you.
We hope these tips help and make your process stress free! Good luck on purchasing your new HOME <3