Before you even begin the home search you are going to want to get a pre-approval from a bank or financial institution of your choice. Right now it is a sellers market so it's a good idea to go all the way through to the pre-approval process before even starting your home search.
When I represent you on your dream home it's going to give you more weight on the bid you submit to the sellers if you have a pre-approval letter. (Which by the way I do not see any of this personal financial information the mortgage lender gets that information) So, what does this do now when we bid, it's is showing the sellers these folks have the money and the credit to actually buy your house. Sounds fair, right?
To get pre-approved you are going to need to verify your income, assets
( down payment), debts and of course your employment.
Income and employment Depending on how you get paid will depend on the type of documents you need. required to verify income. Pretty easy if you are a annual W-2 employee with a paycheck. Simply ask your employer for several months of copies of your pay stubs.
Tax returns: You could be asked for up to two years of your Federal and state returns
W-2 employees: You will typically need at least two of the most recent pay stubs. Self-employed: Typically if you are self-employed at all you will need a year to date profit and loss statement and two years of records to show history of your income. Ok, What Are considered Assets?
Your Bank Statements: 60 days of bank statements which you can typically download in 10 min online from your bank.
Retirement or Investment Accounts: Usually two months of statements and your last statement from your 401(k).
Debts- Yes, they want to know how much you have. Monthly Debts: Get ready to provide all your monthly debts. That would be things like credit cards, rent payments, student loan payments and auto payments. A quick way to to obtain that all in one spot is your free credit report. Do you currently own a home: if you do they will need the most recent statement from your mortgage.
Other - Misc- Rent: If you currently rent you are gong to need to sow that you have paid for 12 months. Copies of cashed checks, your loan officer will help define that. Down payment: Lenders will want to talk about your down payment.Some of you will qualify for down payment assistance or little down but you will need to show some money in an account.