You've budgeted, you've shopped and you've likely spent a lot of time thinking about making that major purchase – a new home. So you decided you’re ready to apply, but now what? You’ll need to get apply for a home loan and be approved for a loan before you make an offer on that dream home. The application process usually means quite a bit of paperwork, so we've broken it down to make it a little easier. Listed below are the items most lenders will ask for when you apply for a home loan.
To apply for a home loan, you’ll likely need:
Lenders will want to see verify source of income so you’ll usually need to be able to provide at least one month of paycheck stubs, some lenders may require more.
Like paycheck stubs, you’ll probably be asked to provide the past one or two most recent W-2s. Can’t find your W-2s? The IRS provides instructions on their website about how to track it down.
Copy of the purchase and sale agreement
This is needed for purchase transactions only.
Proof of other income
This may or may not apply to you. If you have rental agreements, copies of contracts receivables plus 12 months’ payment record, and/or record of alimony or child support and child support payments received – alimony need not be revealed)
Be sure you include company name, address, account number, balance and monthly payment.
If self employed or commissioned sales
Last two years’ tax returns, and for the business, a year-to-date income statement and balance sheet.
Rental or landlord information
Your lender will likely need you to provide details about your current rental situation, if applicable. This could be as simple as providing a name and address or you may need to provide 12 months of canceled rent checks showing the rent was paid on time.
Employer’s name and address
Be sure to give your employer or HR department a heads up, as many lenders do contact your employer to verify employment.
Past bank and brokerage statements
The number of past statements will vary depending on your lender and the type of loan you’re applying for. For example, being self-employed or applying for a jumbo loan could mean you’ll need to provide more statements.
Your past home address.