It's important to keep the possibility in mind that you could be on the hook for other hidden homeownership expenses and plan well in advance. Here's how.
If you’re like most people buying a new home, you’ll finance the purchase by getting a mortgage. Applying for a home loan requires a certain amount of preparation and documentation. In order to avoid delays and multiple meetings, it’s helpful to know what to expect from your first meeting with your loan officer or broker.
How to Get a Mortgage, Step One: Personal Identification
You’ll need valid, government-issued photo identification in order to get your application process started. Your lender will need your social security number, your date of birth and current address. You should also be prepared to provide any former addresses you’ve had in the past two years.
Obtaining a mortgage requires detailed financial information. Of course, the lender can’t simply take your word, so you’ll need to provide documentation. Whether you’re starting with a mortgage pre-approval or are refinancing an existing home loan, many of the required documents are the same.
Documents you’ll need to get a mortgage include:
- Your past two years’ federal tax returns
- Pay stubs for at least the past 30 days
- All W-2 forms for the past two tax years
- Two months of recent bank statements
- Photo copy of Drivers License or ID
- Photo copy of Social Security card
Depending on the type of loan and your financial situation, there may be other documents required to qualify for your mortgage.
Unusual Financial Circumstances and Mortgage Lending
Of course, everyone’s financial situation is different. Depending on your personal financial details, you may need additional information or documentation to be approved for your home loan. You may need to provide the lender with:
- Your divorce decree
- Bankruptcy discharge documentation
- Paperwork relating to any unresolved or ongoing credit disputes
- Origin paperwork for large cash deposits
Any unusual financial circumstances may require you to provide a paper trail in order to get your financing. By anticipating this need, you may be able to avoid delays in the underwriting process.
The quicker you can get approved (or pre-approved) for your loan, the closer you are to the home of your dreams! Now that you know what to expect when you meet with your loan officer or broker, you can minimize the waiting–and the mad scramble for required paperwork–involved in obtaining your home financing.