Mortgage interest rates hit a record low, leading many people to consider buying a home in the coming year. Anyone who wants to enter the real estate market wants to obtain their financial information.If you have already done Home buying worksheet And decide that for you and your family, buying a house makes economic sense for you. The next step is to collect the mortgage documents that may be needed.
The number of documents you may need may seem overwhelming, but if you organize your work around the type of work (for example, employment, taxes, real estate, assets, and debt), you will be intact. This is a guide that can help you do this.
Looking for the perfect home?
Use Rocket Lawyer House Evaluation Worksheet to Compare Properties
And stay organized.
What employment documents do I need to buy a house?
Before getting a mortgage to buy a house, your lender will want to see you have a stable job. This can be done by providing payroll and W2. However, some lenders want to check your employment date and employment status. You can provide this information in the letter from your current employer. In addition, when applying for a loan, you may need to provide your employer’s contact information, including company name, address, and phone number of a human resources representative.
What tax records should I collect?
Your W2 is considered part of your tax record, and most mortgage providers want to see them. If you are self-employed or earn income from non-traditional sources, buying a home may be more tricky. Most of the time, your lender will want to review two years of tax records to prove that your business or self-employment is valid and profitable. The lender relies on this information as evidence of your paid work and ability to pay the mortgage.
If your employment or income changes suddenly, you may need to submit an additional tax year. You can contact your lender to explain the situation and then determine what other tax documents are needed. It may also be time to recruit a real estate lawyer to help ensure that all your documents are in the correct order.
What financial documents do I need to show the lender to buy a house?
The lender will access your credit score to check your debt-to-income ratio and overall credit history. If you have an outstanding loan, you may need to show a document, which may be in the form of a statement with your account balance. If possible, collect the name, address, account number, monthly payment, and outstanding balance of each account into one file so that the lender can easily gather all the information in one place.
Lenders also like to view information about assets. This starts with your bank statement and includes 30 to 60 days of transactions. If you have a business, a year-to-date income statement will be helpful.
All your assets are included in the purchasing power of your house. If you have an IRA, stocks, bonds, CDs or other securities, please bring a statement indicating their value. If you have prepaid money, please prove it by bank statement. Any other income, such as disability reimbursement or dividends, must also be included in your financial information package.
What real estate or residence history documents do I need?
If you have rented a house in the past two years, please list your home address, landlord’s name and contact information. If you are a homeowner, you need to provide proof of home ownership or proof of sale. If you own a non-residential property that is considered an asset, you need to provide proof of ownership.
Buy with Rocket Lawyers
Buying a house is a major investment.Rocket Lawyer can help you navigate the process in a customizable way Real estate and home ownership documents And professional legal advice.use Letter of intent to buy real estate Write down the negotiation terms of your offer.After completing the sale, please use House relocation checklist To make sure you have everything ready to move into your new home.If you encounter legal issues during this process, please contact Rocket Lawyer’s Essay® Lawyer Affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm, nor is it a substitute for a lawyer or a law firm. The law is complex and changes frequently.Seek legal advice Ask a lawyer.
