Getting your loan is the most important piece of the puzzle toward owning a home.
If you are paying cash, you will need to show proof of funds in the amount of the contract purchase price. This is easily done by obtaining a letter from your financial institution verifying that you have the money in your account.
If you need a mortgage, please gather the following prior to your meeting with your lender.
- W2 forms for the last two years
- Most recent pay stubs covering a 30 day period
- Federal tax returns (1040's) for the last two years, IF:
- you are self-employed
- earn regular income from capital gains
- earn sizable interest income, etc.
- earn more than 25% of your income from commissions or bonuses
- own rental property
- or are in a career where you are likely to take non-reimbursed business expenses).
- Year-to-Date Profit and Loss Statement (for self employed)
- Corporate or Partnership tax returns (if you own more than 25% of the business)
- Pension Award letter (for retired individuals)
- Social Security Award letters (for those on Social Security)
- Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don't think them important.
- Statements for two months on all stocks, mutual funds, bonds, etc
- Copy of latest 401K statement (or other retirement assets because they can count as reserves)
- Explanations for any large deposits and source of those funds
- Copy of HUD1 Settlement Statement on recent sales of homes
- Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
- Gift letter (if some of the funds come as a gift from a family member - the lender will supply a blank form)
- Gifts can also require:
- Verification of donor's ability to make the gift (bank statement)
- Copy of the check used to make the gift
- Copy of the deposit receipt showing the funds deposited into bank account or escrow
- Note: many get their statements of various kinds over the internet and these are not always acceptable to lenders, especially when the printed version does not contain the borrower's name, account number, AND the name of the institution.
- Landlord's name, address, and phone number (if you rent)
- Explanations for any of the following items which may appear on
your credit report:
- Late payments
- Credit inquiries in the last 90 days
- Copy of bankruptcy papers if you have filed bankruptcy within the last seven years
Other Documents You'll Need
- Copy of purchase agreement (if you have already made an offer)
- To document receipt of child support (IF CONSIDERED AS INCOME)
- Copy of Divorce Settlement (to show the amount)
- Copies of twelve months canceled checks to document actual receipt of funds
- Copy of Social Security Card (or other documentation of social security number)
- Copy of Driver's license
- Copy of DD214