At least 7 Things You Need as Paperwork When Buying a Home

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Whether you’re buying a home for the first time or are an “old hat” at purchasing property, it helps to brush up on the types of things you’ll need to present to a lender. It’s a smart move to gather the necessary paperwork to prove your income and documents required for home buying well in advance.

It might not require as much work as you suspect, so just go down the following list of requirements when you’re in the mood to begin shopping for a mortgage.

The Top 5 problems People Face When trying to Buy a Home

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BEFORE YOU EVEN APPROACH A MORTGAGE LENDER

Getting a good faith estimate from each lender in order to compare their costs for each type of mortgage loan is a great idea, but before you even complete that task, make sure to pull copies of your own credit reports from the three major agencies in order to examine their contents.

Be prepared to go over your reports with a fine tooth comb to discover any mistakes, delinquencies or other negative items that may have an affect upon your approval status. Try and get mistakes fixed, but note that certain credit reporting agencies make it their business not to fix errors. If too many late payments are listed, it might negatively affect your FICO score.

Low FICO scores can prevent you from obtaining certain types of loans, however, you will probably still be able to get an FHA loan if your FICO score is low, because FHA loans don’t rely on FICO scores. They also necessitate down payments that can be as low as only 2.85% of the property’s sales price, which can be great for folks low on funds.

First off, the lender is going to verify your employment, so warn your job that an inquiry is on the way. Make sure your human resources department responds to the request right away.

ALSO, START COLLECTING THE FOLLOWING 7 THINGS When Buying a Home :

7 Things You May Need to Obtain a Mortgage Loan:

#1 – YOUR CURRENT PAY STUBS FROM YOUR JOB

It helps to pull out all the proof of your income you can find as of late. At least two recent pay stubs should do the trick – and make sure to make copies of them and don’t hand over the originals.

#2 – YOUR W2 FORMS

You’ll need at least two years of your W2 forms, which help prove how much money you’ve made from your job to the lender. It’s a great indication of exactly how much income is coming into your pockets – and helps give lenders the warm fuzzies about whether you’ll be able to pay your bills.

#3 – YOUR FEDERAL INCOME TAX RETURNS

Find all the most-recent federal income tax returns you’ve filed over the past few years, and make sure you’ve signed them. This is further proof that the amount of income that you’ve reported to the IRS is the selfsame income reflected on your W2 forms and other statements. Speaking of statements…get those bank statements ready.

#4 – YOUR CURRENT BANK ACCOUNT STATEMENTS

Get at least the last two or three bank account statements from all of your checking and savings accounts ready to be examined.

#5 – OTHER ASSET AND INCOME STATEMENTS

You’ll also need to provide hard copy proof of any stock holdings, bond holdings and mutual fund account balances, as well as those from retirement accounts like 401(k) plans. Make sure to make copies of the types of statements that you receive in the mail, which are preferable over those you can print out online.

#6 – YOUR CURRENT DRIVER LICENSE INFORMATION COPIED

Dig out your driver’s license from your wallet and present it to the lender in person – or, if you’re not in front of them – and perhaps even if you are, make sure to come equipped with a copy of your up-to-date driver’s license for identification purposes as well.

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#7 – ANY OTHER PAPERWORK YOU KNOW HAS BEARING UPON YOUR MORTGAGE APPROVAL

This isn’t an exhaustive list by any means. After all, you know the pertinent information that is specific to your situation that may have a bearing upon your approval chances.

For instance, if you’ve gone through a divorce and have owned a home in a community property status that might have a bearing upon being approved for a new loan – such as if your ex-spouse endured a foreclosure – make sure to bring all the proof you need that presents an honest and complete picture of your financial life in order to increase your chances of approval.

Tag : buying a home , buy a home , buy home , buy homes , how to buy a home

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At least 7 Things You Need as Paperwork When Buying a Home
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