If you're anticipating buying your first home, you are probably uncertain what types of documents your bank or other lending institution will want to see to help them make a decision about your credit worthiness and whether they are comfortable lending you the money you need to purchase your home.
It's a good idea to get pre-approved before you go house shopping and fall in love with a particular property. In fact, many real estate professionals will not even work with you until you've met with the bank and gotten a tentative "okay" for a loan.
Therefore, one of the first steps to purchasing a new home is to get your paperwork in order. Just what do you need? While this is not a complete list, it will get you started putting together what you need.
1. Your credit reports. The lender will want to see your credit scores and reports from the major three reporting companies. While they are able to access these directly, you'll want to get copies first and scan them for errors.
2. Your W-2 forms from the past two years or your most recent tax returns if you are retired or self-employed. The lender uses these to verify your income.
3. A profit and loss statement, if you own your own business.
4. Documentation about all of your debts, such as credit card balances, student loan balances and car loans.
5. List of assets, such as retirement plans, stocks and bonds, savings account balances.
6. Documentation on rental income. If you own rental property, you'll need cancelled checks or receipts to prove that you are receiving rental income.
To learn more about getting pre-qualified for a home loan, contact Midland Mortgage today!