Curious as to what your lender will ask for when applying for a loan? We got you covered with our preapproval checklist! Put these items aside for easy access! So when you’re ready… you’re ready!
Speaking with a lender is the first step when preparing to purchase a home! A lender will ask you to complete an application and provide you with a preapproval letter. Here are some items a lender may ask for when preparing to review your finances:
01. 2 Months of Pay Stubs – Pay stubs are your most current proof of employment and income. It’s important for the lender to see what your are making currently at your job.
02. Tax Returns from the Past 2 Years – This will show your take home. If you are a 1099 employee and have had large write offs over the last couple years, the lender will more than likely only be able to approve you based on your net income after write offs.
03. 2 years of W-2/1099 – This shows consistency. If you have been at the same job, at the same company or in the same business for an extended period of time, it’s a good sign for the lender. They’d want to imagine you are planning on keeping your employment consistent.
04. Statements From All Debts – Do you owe student loans? Car loans? What are debts that have to be paid every month? This will affect your debt-to-income when the lender is deciding on how much you can afford and how much they are willing to lend you.
05. Copy of Your ID – Are you who you say you are? This will help confirm the SSN, all employment information, andany debt information is for the correct person.
If you would know the value of money, go and try to borrow some
Benjamin Franklin
06. 2 Months of Bank Statements – This will tell the lender what liquid assets you currently have. It can also tell them your money spending habits. Is the amount of money coming in every month enough to support the monthly mortgage they plan to give you.
07. History of Residence for the Past 2 Years – This is a sign of stability. It will show the lender you are able to maintain a living situation, whatever it may be, for an extended period of time.
08. Any Investment Account Statements – Investment accounts are considered assets and in some cases, income. The lender needs to be aware of these accounts to better qualify you.
09. Proof of Any Supplemental Income – Supplemental income examples would be bonuses, tips, overtime pay, etc. If you plan to count as income, lender will require a paper trial.
Do you think you are ready to start the home buying process? Get started with an S&C agent! Contact us here!