A standard mortgage loan application asks for quite a bit of personal information. In fact, unlike any other application for credit, your lender will want to know whether or not you have any dependents such as children of those you’re taking care of and if so how many and their ages. Your monthly income also needs to be documented and you’ll be asked to provide third party paperwork verifying how much you make each month and even how much you’ve made year-to-date. And this is just for starters. What are some things you can do to better prepare for a home loan application?
If you’re first getting curious about buying a home and have only recently started to log onto the web and look at real estate for sale. You may be a few months out of actually making an offer but before you do, first check your credit report. Unfortunately it’s no secret that credit reports can contain errors and you don’t want to be surprised when your lender pulls up a report and wants to know why a listed account is in collection. And the account doesn’t even belong to you.
Gather up your most recent pay check stubs covering a 30 day period. These stubs will list your gross monthly income along with year-to-date income. You’ll need your most recent two years of W2 forms as well. If you’re self-employed, get copies of your last two years of personal and business returns.
Finally,contact your insurance agent and let the agent know you’re getting ready to buy a home. Your lender will need this information to get certain legal wording placed in your policy. Finally, run copies of your bank or investment statements from the accounts to be used for a down payment and closing costs.