What Do You Need to obtain A Home Mortgage Loan

452513403The process of buying a new home can be daunting, but knowing what you need before applying for a mortgage will help save time. There are several documents that must be present in order to purchase a home. If you have bad credit, you may need to complete even more paperwork, but as Dean Graziosi notes in a blog post, purchasing with less than stellar credit is still possible.


When buying a new home, lenders will require paperwork that documents each aspect of your financial situation. You should know what is required before beginning the process and have the documents ready to go.


Are you employed? If not, you will have significant difficulty finding a lender who will trust your ability to pay for a house unless you have proof of some other form of regular taxable income. Your mortgage lender will want proof of your employment or whatever type of taxable income you possess.


You’ll need to come prepared with check stubs, W-2s, or any electronic proof you may have of employment. Even if you are paid electronically, you may still receive a paper stub that can also be used. If you do not receive this in hardcopy form, you may be able to access your employee website to print it out. Verification of employment will serve as the first step. Typically you will only be required to present one payment verification for one month and the W-2 form for one year. Some lenders may require W-2s for two years instead.


What are your personal assets? You will be asked whether or not you own anything of great value like a car or other property. You’ll also be asked if you have money in a savings account and if so, how much? You’ll need documentation to show all your personal assets so the lender will know what you own and how much you’re worth.


You’ll need to present bank documents to verify all accounts you currently have open, as well as documents proving all your investments. You’ll also be required to provide tax documents including returns with all the pages and schedules. The bank and investment statements must go back at least 30 days. You are also now required to sign IRS Form 4506-T. This will allow the lender to obtain a transcript of your tax return from the IRS. This became an industry standard used to help prevent fraud.


Do you currently pay rent? If so, you’ll be asked to prove you are able to make monthly payments on time. Your rental history will be very important to the lender because it will show your ability to pay monthly mortgage payments.


When talking to a lender, ask what documents you will need to present. While there are standards in place, some lenders may differ in their requirements. Knowing what will be required of you ahead of time will make the entire process go more smoothly. You can learn more about these and other real estate topics by visiting Dean Graziosi’s website.

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