Getting the Paperwork Started for a Home Purchase
The resolve to buy a home is both thrilling and worrying. You may have just begun your search, or you may have already discovered the home of your dreams. Purchasing real estate compels you to do a bit of research, coordination and paperwork, but you will obtain your reward for excellent preparation when the loan process and closing progress goes smoothly and without incident.
The first step in this process is getting a copy of your credit report. Since so many buyers find mistakes on this document, you need to check yours and make sure that everything on the report is accurate. If you do find a mistake, try contacting the creditor first to correct any problems. Just because you have a low credit score does not mean you cannot buy a house, you may just have to pay a higher interest rate.
Get Your Paperwork Organized to Expedite the Approval Process
After you have gone through the procedure of picking a lender and the type of mortgage you want to get, the lender will have execute a verification of employment. You can contact your human resources department and let them know that they can anticipate the arrival of this form. That can make the return time for that document much faster.
You will also need a minimum of one month's worth of pay stubs or payment records from your current employer. Make copies of these and retain the originals. Find the most recent W2 forms that your employer sent you for the last two calendar years. Your lender needs these wage and tax statements from you as well as from your spouse or other individual with whom you are applying for the mortgage. Find your 1040s and make copies of the documents. Obtain the two most recent years of tax returns even if you have not yet filed your return for the the just-past calendar year.
Collect Personal Documents to Complete the Process
Lenders request just a few more pieces of paperwork to make their mortgage decision. Locate at least three months of your checking and savings accounts statements and give photocopies to your lender. You will also need to make copies of any asset statements, be sure to include those for retirement accounts, stocks, bonds, or mutual funds. If your mortgage lender is a local business, bring along your driver's license so the lending agent can make a copy of it for identity verification purposes. If not, send in a copy of it with the other necessary paperwork. If you do not have a license, a passport will suffice.
Look through your personal accounts and write down a list of all your present debts and how much you owe. Include in the list any car loans, credit cards, other real estate loans, and student loans, and take notice of how much you pay each month for them. Some lenders require copies of these statements. In addition, scrutinize personal financial records and make note of how much accessible cash you will have on hand after you have given your down payment at your home's closing. Bring copies of your Social Security card as well as that of the individual with whom you are buying the house if both of your names will be on the loan. Once your paperwork is in order, the mortgage process should conclude seamlessly.
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