If you are a first time home buyer or builder, it will help to have your paperwork ready and make sure you have what you need for your mortgage application. To help keep you from being overwhelmed, here’s a home financing checklist:
Documents Needed for Mortgage Application
- Proper Identification
Make sure you have a valid form of ID like a drivers license, and if you are not a U.S. citizen, have your Green Card or work visa ready. This is especially important if you are applying for a government sponsored loan. Note for Non-citizens: Lenders want to know that you will be in the country for at least three years, so bring documentation that shows your intent to work for at least that amount of time.
- Tax Records
Make sure that you have at least two years of tax records and six months of bank records. This is necessary to substantiate a consistent income. Specifically, bring:
- W-2 forms for the last 2 years for each person applying for the loan that collected a paycheck
- The last 1-2 federal tax returns
- 1099 forms (if you own a business)
- Income & Assets
Bring documents to tell the lender how much you earn, owe and own. The lender will need this information to calculate your debt-to-income ratio for making a decision on your loan. They will want to see recent paycheck stubs, a complete list of debts, monthly payments, a list of assets and possibly proof of recent rent or mortgage payments. If you currently own any properties, bring in documentation for those financial arrangements, especially if those items still have liens on them.
- Credit Scores
Although lenders will look up their own version of your credit score, it doesn’t hurt to pull down your free credit records and pay for your credit score report so you know where you stand and what to expect. You should actually check these at least six months before walking into a bank office in order to fix errors before a banker sees them.
If you are applying for FHA, VA or USDA loans, check the proper government website for the minimum requirements and additional documentation that you may need to present your banker. And of course, check with your lending institution for anything we may have missed.
If you have questions or if you would like help getting a loan for one of our homes for sale or new construction loan in the Bethesda, MD or greater Washington, D.C. area, please contact us at The Rasevic Companies. We are ready to help you get into the home of your dreams!
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