What Documents Do You Need to Apply for a Home Loan?
Congrats, you’re finally ready to buy a house! But, before you can truly start looking – you’ll need to get pre-approved for a mortgage loan. Whether you’re applying for a home loan for the first time, or you’re an experienced buyer, there are some important things to keep in mind to make sure the process is simple. Here are some examples of what your mortgage lender will need when you are applying for a home loan.
Mortgage lenders typically want to see one to two years worth of tax returns to make sure your income is consistent and that there aren’t big fluctuations from year to year.
Pay Stubs, W-2s or Other Proof of Income
While your tax returns help give your lender a clear idea of your overall financial health, pay stubs help them gauge your current earnings. If you are self-employed or a contract worker, make sure you have paperwork showing your earnings from the past year and a Year-to-Date Profit & Loss statement. If you rely on other income, such as social security or alimony, a statement of benefits would be requested.
Bank Statements & Other Assets
Bank Statements and other assets including investments and life insurance are necessary to verify the down payment. Bank lenders may also want to make sure you have several months worth of reserve mortgage payments in your account in case of an emergency.
Lenders will often pull your credit report in order to assess you as a borrower. You may need to explain negative items on your credit and prepare a written statement. If you don’t have a credit report, your renting history or canceled checks can be used instead.
You’ll need to provide a photo ID, such as a driver’s license or passport, to prove your identity.
The exact forms you will need for a home loan will depend on your situation and speaking with your mortgage lender or bank will help you assess exactly what you need to apply.
When it comes to home loans, Points West Community Bank can help you find the right loan for your needs. We take pride in our helpful staff and the products we offer. Please contact one of our friendly loan professionals today.
Points West Bank is an equal housing lender.