Buying your home can be a challenging experience. Perhaps the most intense part surrounds your financials, considering buying a house is a big financial commitment and a huge personal step – which is why your lender needs so many required documents in order to assist you in qualifying for a home loan.
Your lender will need a lot of information to verify your financial condition, including validating your gross annual income, all of your debts and assets, your credit and ability to re-pay your debts, and much more.
You can help your lender by gathering the following required documents for a home loan:
- W-2s over the course of the past year (your lender will let you know if they need two years’ worth.)
- Paycheck stubs for up to three months.
- Proof of supplemental income (if you have any.)
- Tax documents for two prior years. Being self-employed means may have to present a current profit-and-loss statement, and other supplementary financial documentation as determined by your lender.
- Bank statements for all of your active accounts, possibly ranging from one to three months.
- All information and documentation surrounding your investment accounts – such as your 401(k) – IRA and stocks, ranging from one to three months.
- Documentation surrounding all of your debts, such as your credit cards, car loans and other financial obligations.
- A copy of your driver’s license.
- Your residence history, including names and addresses for your landlord (if you’re renting), or a current mortgage statement (if you own.)
- If you’re divorced, you may need a copy of your divorce papers and statements of alimony or child support payments (if applicable.)
Make sure you provide your lender with every page of each document, even if it’s blank or seems insignificant. It’s also best to assemble your supplementary documents as early in the process as possible to help educate yourself, assist in speeding up the process, and properly prepare for the beginning steps of your home buying journey. You never know how quickly the process can move, and you may be in your new home before you know it!