Whether you’re a first-time homebuyer or it’s been awhile since you’ve purchased a home, managing all the paperwork can feel like an overwhelming task. A little preparation can go a long way to making buying a home less irritating.
Start by checking your credit report and credit score. You don’t want to find out at a mortgage lender’s office that you never paid a bill from three years ago or that someone stole your identity. Check your credit report for free a few times per year to make sure nothing is amiss.
The next step is to get pre-qualified for a loan. This helps you figure out how big a loan you can get, which will affect the price range of homes you can afford. During this process, a mortgage lender will ask about your finances and debts and give you an estimate. In some cases, you can get pre-approved for a loan, which is considered more favorable than pre-qualification.
Whether you get pre-approved or not, the mortgage application is a crucial part of the homebuying process. Mortgage application issues come up often, sometimes simply because you are missing a necessary document. Use this handy mortgage application checklist to make sure you have everything you need before submitting your application.
Mortgage Application Checklist
Make copies of the following documents to share with your mortgage lender:
- W-2 statements for the past two years
- Pay stubs for the past 30 days
- If self-employed, personal tax returns for the past two years, including schedules
- If self-employed in a corporation, the last two years of returns, plus a profit and loss statement and balance sheet
- Monthly bank statements
- Statements for retirement accounts such as 401(k), IRA or mutual funds
- Statements for any stocks, bonds, CODs
- The purchase agreement
- If divorced, a copy of the divorce decree
If you are considering purchasing a new in the Raleigh-Area, the team at Weaver’s Pond can help you with the entire home buying process. Contact us to learn more.