Gather Documents Prior to Purchasing a Home

A free article on Mortgage

By: Lee Bell

There is nothing quite as exciting as purchasing a home. For many buyers, it will be the biggest investment of your life. Still, there is also no refuting the fact that purchasing a home is a nerve-wrecking process because of the amount of time, money and paperwork that is normal with a home purchase. Whether you are just starting to look at homes or if you already know what home you want to buy, purchasing a home does require some investigation and effort. Any time that you spend in preparation is well worth the effort because it will help the lending and closing processes go smoothly.

The first step in this process is getting a copy of your credit report. Because so many buyers discover mistakes on this document, you need to check yours and make sure that everything on the report is accurate. If you do discover a mistake, try contacting the creditor in questions right away to fix any problems. Also, just because your credit score is low does not mean you cannot buy a house, you may just have to pay a higher interest rate.

Time Spent Organizing is Worth the Effort

After you have picked which lender you would like to deal with as well as the mortgage rates you anticipate getting, your lender will ask you for a Verification of Employment form. What you can do is ask your human resources office to keep an eye out for this form. That way you can rest assured that your critical document is not simply sitting around in a stack of mail or on top of a fax machine. If human resources is expecting the document, they are much more likely to complete it quickly.

The other set of records that you will need are your pay stubs. Make sure you give your lender copies and not the originals. You will also need the last two W2 forms that you have gotten from your employer. Your lender will also definitely need your tax returns from the last two years as well. If you have a co-applicant, all of these documents will be needed for that person also.

Get Confidential Financial Information Together

Unfortunately the paperwork isn't quite over yet. You will also need to find three months worth of checking or savings account statements. In addition, if you have assets for anything like mutual funds, stocks, bonds or retirement accounts, you will have to provide copies of this information as well. The lender is also going to want a photocopy of your driver's license or passport.

Look through your personal accounts and type up a list of all your present debts and how much you owe. Include in the list any car loans, credit cards, other real estate loans, and student loans, and take notice of how much you pay each month for them. Some lenders want copies of these statements. In addition, examine your personal financial records and make note of how much ready cash you will have on hand after you have paid your down payment at your home's closing. Bring copies of your Social Security card as well as that of the individual with whom you are buying the house if both of your names will be on the loan. Once your paperwork is in order, the mortgage process should conclude seamlessly.