Buying a home is a multi-step process, which can even feel overwhelming at times. If you have all of the necessary paperwork prepared and organized ahead of time, it can greatly alleviate some of the stress of the homebuying process. The loan specialists at Foundation Mortgage can help you better understand the types of documentation you will need to provide when buying a home in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee. Read on for more details about how to effectively prepare the documents you will need to help get you into your new home.
Documents Needed for Your Home Search and Loan Preapproval
When you are beginning to look for homes and start applying for a mortgage, you will first need to acquire a copy of your credit report. Since the amount of money you are able to borrow for a loan will be impacted by your credit score, you will want to ensure that all of your credit information is accurate and up-to-date, and that there are no items that will potentially lower your credit score. Another document that will be advantageous in the beginning stages of purchasing a home is a letter of preapproval, which describes the type of financing that you have qualified for and demonstrates to a home seller that you are serious about making the purchase. Obtaining a preapproval letter requires proof that you can afford to make monthly mortgage payments consistently with pay stubs, tax information, and proof of any additional assets you may have.
Paperwork Involved When Completing the Home Purchase
In addition to your credit report and letter of preapproval, you will need to gather other necessary documentation in order to close on your home. Lenders essentially want to see that you have a dependable form of income and will be able to afford the monthly mortgage payments, so you will need to provide proof of employment and pay stubs. You will also be required to show proof of additional assets you may have, such as any social security, stocks or bonds, pensions, etc., and you will also need to produce tax information including tax returns and W2s from the past two years. Lenders will want to get an understanding of your overall financial picture and any debt you may have, so they will require recent bank statements and any paperwork that is associated with your debt, such as student loans, credit cards, car payments, etc.
Begin Organizing Your Paperwork To Buy a Home
There is a significant amount of documentation needed when you finalize the purchase of a home, and having the paperwork organized ahead of time can definitely help ease the process. If you are buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and need help organizing your documents, contact Foundation Mortgage today for a consultation.