First Time Home Buyer Loans – What Information You will Need
Posted by Elizabeth Dennis on June 29, 2010 | 1 Comment
If you are planning to buy a home, it is important to get your financial information and documents in order as soon as possible; even before you look at your first house. By doing so, you will significantly speed up the loan application and mortgage approval process.
Let’s take a look at what you will need.
- The very first thing you should do is request a copy of your credit report. Make sure there are no outstanding problems or errors that may prevent you from taking out a mortgage. It could take some time for discrepancies to be cleared up, so get this process going immediately. Along the same lines, be mindful of activity that is happening with your accounts during the home buying process. Avoid transferring large sums of money or taking out new debt.
- Now it is time to create a file of your financial records. Here is what you will need:
- W-2’s and tax returns for the last two years
- Pay stubs for the last two months
- If self employed, two years of tax returns plus a current profit and loss statement (i.e. income statement). If your income has been irregular you may need to produce account information from the last three years.
- Two months of checking account statements
- Two months of statements from other accounts (IRA, savings, money market, etc.)
- Documentation of other assets such as stocks, bonds, and CD’s
- Records proving that derogatory credit report items are paid off
- Social security numbers for those buying the home
- Two years of employment history; preferably steady work in the same industry
- Balances of other debt including car loans, store charge cards, credit cards, etc.
- Current landlord’s contact information, monthly rental payment amount, and previous landlords for the last two years
- If you currently own a home, have ready the address, mortgage lender, account number, payment amount, balance, and current market value of your home.
- The following are particular circumstances that may or may not apply to you:
- If you are separated or divorced, you will need your divorce decree or separation agreement. Include also child support payment amounts to be included in your income.
- If public assistance is part of your income, you will need to provide the amount you receive.
- If you have declared bankruptcy or have gone through a foreclosure or any other credit-related judgments against you in the last seven years, produce documentation of the proceedings.
The thought of gathering these items may seem tedious to you but is a critical step in the home buying process. Make copies of all documentation or better yet scan each piece and store it on your computer to be printed or forwarded electronically as needed.  Stay organized by purchasing a portable accordion-style folder to store the originals and hard copies.
Tags: home buying tips
Filed Under: Home Buying, Newbuyer's Own
