Financing Tips

Financing your home can be an overwhelming process if you are unsure of what you are doing. The more prepared you are ahead of meeting with a lender, the quicker and easier it will be for you to get pre-approved—ultimately facilitating the path to you acquiring your new home.

Make sure you have the following documents in hand for the pre-approval process:

Income Items

• W2 forms from the last two years
• Pay stubs covering a 30-day period
• Federal tax returns (1040’s) for the past two years if you:
  • Are self-employed.
  • Earn regular income from capital gains.
  • Earn sizable interest income.
  • Earn more than 25 percent of your income from commissions or bonuses.
  • Own rental property.
  • Are in a career where you are likely to take non-reimbursed business expenses.
• Year-to-date profit and loss statement (if self-employed)
• Corporate or partnership tax returns (if you own more than 25 percent of the business)
• Pension award letter (for retirees)
• Social Security Award letters (if applicable)

Asset Items

• Bank statements for previous two months
• Statements for two months on all stocks, mutual funds, bonds, etc.
• Latest 401K statement (or other retirement assets)
• Copy of HUD1 Settlement Statement on sales of recent homes
• Copy of estimated HUD1 settlement statement if previous home is for sale but not yet closed
• Gift documentation (if funds come as a gift from a family member)
  • These can also require:
    • Verification of donor’s ability to make the gift
    • Copy of the check used to make gift
    • Copy of deposit receipt showing funds deposited into bank account or escrow

Credit Items

• Landlord’s name, address and phone number (if you rent)
• Explanations for items that may appear on your credit report including:
  • Late payments
  • Credit inquiries in last 90 days
  • Charge-offs
  • Collections
  • Judgments
  • Liens
• Copy of bankruptcy papers (if applicable within last seven years)

Other

• Copy of purchase agreement (if you have made an offer)
• Documentation of receipt of child support (if you want to show as income)
  • Copy of divorce settlement
  • Copies of 12 months canceled checks to document receipt of funds

FHA Loans

• Copy of Social Security Card
• Copy of driver’s license

VA Loans

• Copy of DD214

Refinances

• Copy of most recent monthly mortgage bill