FIRST-TIME HOME BUYERS ASK: WHAT PAPERWORK WILL I NEED TO GIVE THE LENDER?
I don’t know why this part always makes people nervous, especially the first time home buyers. You can tell a doctor or therapist about the most embarassing and intimate details of a your life without blinking but then become shy when it comes to telling a lender about your financials when committing to a 30 year home loan.
HOME LOAN PRE-QUALIFICATION is more of a surface evaluation of your finances. Initially you will only need to furnish the following to give the lender/loan officer a snapshot of your finances:
- 2-3 months most recent pay stubs
- 2-3 years recent tax returns and W-2’s
- 2 months most recent bank statements
- Copy of ID and Social Security Card
Usually within 24-48 hours you will get an idea of the amount you are possibly pre-qualified for in terms of purchasing price.
HOME LOAN PRE-APPROVAL, which I prefer before taking a buyer out to show properties, is a much more thorough evaluation of the buyer’s true finances and eligibility. It is best for the first-time home buyer to tell the lender everything upfront. BELIEVE me a good lender will find out anyway. Here are just some of the things the lender will inquire about in regards to your financial setup and eligibility.
- Credit Card debt
- Back taxes, if any
- Monthly Car Note
- Child support payments, if any
- Alimony payments, if any
- Student loans and are they deferrable?
FIRST-TIME BUYERS ALSO ASK: WHY DO THEY (THE BANKS) NEED SO MUCH INFO?
Most people are squeamish about loaning money to family or friends. When is the last time you loaned $100 to a STRANGER? How about a $1000? How about $100,000ds of dollars upfront to a stranger?
With both low home prices and low home mortgage interest rates, why not find out how much home you can afford now? We also have a team that can assist you with credit repair to get you on the right track to buy!
Fill out this short form to start the process. Do I Qualify for a Home Loan?