A common dilemma that many potential homebuyers face: determining how much house they truly need.…
Purchasing a home requires a lot of paperwork but no worries, I’m here to help you navigate the entire loan process! Here are a few items you can put together before starting your home search.
Get Your Taxes in Order
If you have any tax issues or back taxes owed, it is critical to get these straightened out before applying for a mortgage. Depending on your situation, this may be as simple as filing forms or as complex as coming up with a payment plan with the IRS.
If you are self-employed or own investment properties, you may need to provide your tax returns for the past 2 years. Having tax documents available can make the process much smoother.
You will probably also have to submit bank statements, especially if a good portion of your net worth is in savings. Why does your lender want to see these documents? They want to know that you have the funds available for a down payment and closing costs.
One of the most crucial documents that you will need to provide is your income earnings statements. For those in traditional employment, this will be a W-2. For self-employed individuals, a profit and loss statement plus tax returns may be required. If you are an independent contractor, you will need to provide your annual 1099 statements.
Getting your documents in order before you start the mortgage process will make everything much faster. If you have any issues with getting these things, you can take the necessary steps to find or fix them before you fall in love with a house and aren’t approved because of a lack of paperwork.
Be sure you connect with me before you go home shopping and I will help prepare you for homeownership!
Yvette Phillips Thomas, Mortgage Broker NMLS 294675