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Applying for a mortgage can be a complicated process, but you can’t buy a home without a loan. Before you get discouraged or jump in unprepared, take a look at the four vital documents you need before applying for a mortgage.
A lender wants to see your tax returns to understand the big picture of your finances. Your taxes give them a lot of information, including accurate numbers regarding your earnings.
While your taxes show your earnings, most lenders also require proof of income consistent with what you claim on your taxes. Several months’ worth of pay stubs, a W-2, or 1099 all work to provide the necessary proof.
The lender will pull a copy of your credit report for you, but the information provided is critical to your loan approval. A low credit score or negative information on the report can determine whether or not you get the loan for your new home.
Your lender will want to see what you have available in your bank account, as well as a record of any other assets in your name. This can include retirement accounts, life insurance, real estate, and brokerage accounts.
While the mortgage application process can seem daunting, the right preparation can make it feel less overwhelming. Know what documents you need before you get started, and it can make everything easier. For more information on what you need to apply for and secure a loan, talk to the team at Midland Mortgage Corporation today.