Buying a home?
So you’re thinking of buying a house? Applying for a home loan can be a little daunting, but if you have all your ducks in a row it will be smooth sailing. Here are 10 things you need to have ready before applying for that home loan!
1. Your Credit Score: Before applying for a home loan, you will need to know your credit score. Lenders use this as an indicator of how financially responsible you are and your likelihood of paying back the loan.
2. Tax Returns: Most lenders want to see your tax returns from the past two years in order to verify your income and other financial information. Be sure to have all the necessary documents ready before submitting your application!
3. Down Payment Money: While not always required, many lenders require some sort of down payment on a home loan. You’ll need to have access to some money saved up or at least be able to prove that you can get it together within a certain time frame in order to make the purchase.
4. Employment Verification: Lenders will often ask for proof that you have a steady job with enough income to comfortably afford the payments on your home loan. Make sure to have any necessary documents showing your employment history ready before submitting your application!
5. Proof of residence: Lenders often require proof of residency in order to approve home loans. This may include a utility bill, rental agreement, or other similar document that shows where you currently live and how long you’ve been living there.
6. Bank Statements: Lenders want to see recent bank statements from all of your accounts so they can verify that you have sufficient funds available for closing costs and other related expenses when buying a home.
7. Debt Statements: Lenders need to know about any debts you’ve incurred over the past few years in order to determine if you are capable of taking on a new home loan. Have statements from all your lenders ready before applying!
8. Asset Statements: Some lenders may also want to see proof of any assets you own, such as stocks or bonds, and how much these are worth. This is so they can verify that you have enough money available to cover closing costs and other associated expenses with buying a home.
9. A written plan: Before applying for a home loan it is good practice to come up with a written plan outlining why and when you need a mortgage and how much you can afford. This will help the lender decide if you are a good candidate for a home loan!
10. A pre-approval letter: Lastly, many lenders require borrowers to obtain a pre-approval letter from them before beginning the process of buying a house. This is an important part of the loan application process and you should have it ready before submitting your application.
By having all these items in order, you can make sure that applying for a home loan will go as smoothly as possible! Good luck on your journey to homeownership!
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