The home purchase process often begins and ends with mortgage paperwork. Why? It’s simple. You’ll have to get preapproved for a mortgage before you can negotiate with a seller to buy a house, and in order to close the deal, you’ll have to sign a finalized mortgage contract.
All this paperwork requires documentation, and before you can get preapproved for a loan, you’ll have to provide your lender with a lot of personal information. If you’re a first time home buyer, you may be confused as to what documents your lender needs to see. Read on to find out.
1. Personal identification. Your lender will likely require two forms of ID in order to verify that you are who you say you are. Home buyers rarely struggle with this step, but make sure you have your ID on hand and available.
2. Bank statements dating back at least three months. Your lender wants to know that you have money in the bank. Most often, these bank statements are required in order to prove that you have the necessary funds for the down payment. If you’re pursuing a loan program with a minimal down payment, such as an FHA mortgage, or none at all, such as a VA home loan, you may not need to provide this. Check with your lender.
3. W2’s from the past two years. These are provided as proof of employment. The more stable your employment history, the better.
4. Pay stubs. These provide proof of income.
5. Rent payment documentation. You’re a first time home buyer, and that likely means you’ve been making rent payments for a while. Your lender will want to see that you’ve made all payments on time. Talk to your lender and your landlord about what type of rent documentation is required.
