Desteni Says: Prepare your Paperwork

By
desteni-says-5Ready to buy a home? It’s important to get your paperwork in order before reaching out for pre approval. Going in prepared and focused helps make the process flow smoothly and efficiently.

We’ve prepared a handy checklist to make gathering the right info quick and easy:

1) Review your credit report. We’ll check it as well of course when you apply, but it’s good for you to know where you stand ahead of time. That way if there are any mistakes or blemishes on your report, they can be corrected before you apply.

2) Gather your W2 forms from the last 2-3 years and at least one current pay stub. If you’re self-employed, gather your business tax forms and pull a year to date profit and loss statement. You’ll need them as proof of income.

3) Gather 2 months of bank statements for your checking and savings accounts. You’ll need to show evidence of regular income, and if you can prove your down payment and closing costs are already in the bank, that’s even better!

4) Gather your personal tax forms from the past 2-3 years.

5) Gather at least 2 months of your 401(k), IRA or other retirement and investment account statements. Some loan products will consider a significant portion of a borrower’s eligible financial assets to determine whether they qualify for a mortgage. Some restrictions apply, ask us for details.

6) If you have additional income such as such as child support or pension, gather documentation of them as well. Child support may or may not be considered as regular income, but if you can prove regular, consistent payments, your chances are better that an underwriter may consider it.

7) Gather then names, balances and account numbers for all of your current debt. This includes credit cards, student loans, car loans, store lines of credit and other consumer debt, alimony payments, child support payments and of you are divorced, your divorce decree.

8) If your down payment was given to you as a gift, you’ll need evidence of this for your lender clearly stating that this money was a gift and not a loan that needs to be repaid. We have an official letter on file in the office that will need to be signed by you and your donor to help you with this requirement. Gifts for down payments have some restrictions, depending upon the type of loan you are applying for. Watch the “Desteni Says” section of our blog for a detailed post about this in the near future, or reach out to us for details about down payment gifts now.

9) Gather evidence of your residence history for the last 2 years. This includes the name and phone number of your landlord if you’ve been renting, or your current mortgage information if you currently own a home.

By doing a little bit of “pre-homework” and gathering all of the essential information before applying for pre-approval, your application process will move forward with ease! Once you’ve gathered all of your information, call us at 877-892-8222 or text “simple” to 48421 to begin the prequalification process!