The home buying process is an exciting time. Especially with new app technology that allows you to view several homes from the comfort of your couch! However, once you are ready to apply for a loan, you’ll need to be prepared with the appropriate documents so the process can run as smoothly as possible. At GVC Mortgage, we’ve been helping home buyers get into their dream homes in and around Carmel since 1996. Today, we’re listing five documents you’ll need to begin the home loan process.
1. Tax Returns
Because part of the mortgage application process is stating your income, you’ll need to provide your last 2 years of tax returns, including your W-2s and 1099s. These documents show your financial history, and help your lender determine how much mortgage you can afford.
2. Pay Stubs
In addition to using your tax returns to get an idea of your financial situation, your lender will also need to see your 2 most recent pay stubs. Again, this information helps your lender understand your current financial situation so they can determine your home loan amount.
3. Bank Statements
The final piece of the financial puzzle is two months worth of bank statements. In these, your lender won’t just be looking at the amount of money you have in your accounts, but also if there is stability there, or significant fluctuation. They may even ask for more information regarding large deposits or other irregular activity.
4. Proper Identification
As with most important transactions, your lender will need proof of your identification to complete the loan process. In most cases, home buyers use their driver’s license, however, a passport or other government-issued ID is also accepted.
5. Renting History
Finally, for buyers who were formerly renters, your lender will likely request proof that you can pay your mortgage on time. They may request a year’s worth of canceled rent checks or documentation from your landlord showing that you paid your rent on time each month. This documentation is especially important if you do not have a long credit history.