It’s definitely a big issue to take out a mortgage loan and buy your dream home. The process is complex enough as lenders make it a point to check lots of financial documents and information to make sure that the borrower will be able to pay off the mortgage loan on time. Arranging all the necessary documents on time is undoubtedly an important task.
The essential financial documents that you need to collect before buying a home
You need to carry the following documents with you while meeting your mortgage lender for the first time. Have a look at the documents:
Your recent paycheck stubs: You must be able to prove your income. At least there must be verified income for one month. To prove the income you’ll have to produce your most recent paychecks. In case you don’t have a regular income, you’ll have to provide details of other income sources. For instance, if you’ve an income from investments, retirement, life insurance or annuity, then you can present documents related to them to prove your eligibility.
Copy of your updated credit report: Your credit report is also extremely important and lenders will surely check it before approving your loan application. So, you must contact credit bureaus and get your credit report ready. If there is any discrepancy in your credit report, then make it a point to resolve that before meeting the lenders. A better credit report and score will only make it easier for you to get a mortgage loan.
Tax related documents: All the documents and information regarding your tax filings and bank accounts must be provided along with your application. Only the details of last 30 days will do. Documents regarding your recent tax returns will also be checked by the lenders. So, you must accumulate all the tax related necessary documents before arranging a meeting with your lender.
Apart from all the documents mentioned above, you must make it a point to collect all the documents on time. It may take time to collect all the documents. So, you must start working early, specially for your credit report. For real estate investors, it’s also important to provide the documents proving income from the rental property. The homeowners who’re planning to buy a new property and rent out their previous property must provide the rental agreement, bank statements and the canceled rent checks too. So, before meeting your lender, make sure you’ve all the documents with you.