Buying a home can be a stressful process – especially if you’re doing it for the first time. But there are steps you can take to prepare yourself so that there are fewer surprises along the way. One of those steps is gathering all the paperwork you’ll need to buy a North County home. By collecting your documents now, you’ll be less stressed when it’s time to make an offer. Here’s a list of what paperwork you should begin to organize so you’re ready to buy a home.
Proof of income
Lenders will want proof that you’ll be able to make payments on your loan. One of the ways they verify this is by looking at your pay stubs. You’ll need to show at least 30 days worth of income. This not only includes money from your job but also self-employment income and child support payments you may receive.
Proof of employment
Your lender will want to verify your employment details, so gather contact information for all your employers for the last two years. You can supply the names of your current and previous supervisors or the contact information for the human resources department.
In addition to your pay stubs, lenders will want to review your tax documents. This gives them a bigger picture of your financial health. It also allows them to verify the income you are reporting. Plan to show them at least two years’ worth of tax returns. And if your income has changed dramatically in that time, be prepared to provide documentation to show why.
Be prepared to provide your lender with important financial statements. This includes up to 60 days worth of bank statements so they can see how money comes and goes from your accounts. You’ll also need to provide them with statements from CDs, IRAs, stocks, and bonds. And be ready to show them where your down payment money will come from.
If you have any other loans, then the lender will want to know about them. Whether they are car loans, credit card debts, student loans, or other mortgages, be sure to have the relevant paperwork on hand. Provide account numbers and balances as well as the contact information for each lender.
Earnest money source
Earnest money is the money you include with the offer on a home. You will need to show proof of where this money is coming from. Is the earnest money a gift? Then be sure the person giving the gift writes a letter stating that they are giving you the money – it cannot be a loan.
Collect all the information about your current and former addresses for the last two years. This includes your landlord’s name and contact information if you rent.
Documents about other properties
Do you own any other homes, or have you in the past? You’ll need to show the documents that are related to the ownership or sale of those properties.
While your lender will pull your credit report for you, you should get a copy for yourself as well. Plan to get your credit report at least six months before you make an offer on a home. Look for errors on your report and take the necessary steps to have them removed. Pay down debts and try to improve your credit score as much as possible before applying for a mortgage. This will ensure you get the best possible terms.
Finally, don’t forget that you’ll need a current photo ID to buy a home, such as a driver’s license or passport. If your ID is going to expire soon, make sure to renew it before you buy a home.
Contact the Clark & Gilman Team
When it’s time to buy a North County San Diego home, it pays to have an expert on your side. Contact the Cristine Clark & Jamie Gilman today at 760-758-1211 or [email protected]. We’re standing by to answer all your questions.