Are you in the process of looking to buy a home, and unsure of the documentation and paperwork you will need to provide in order to obtain a mortgage and complete your purchase? The home-buying process involves several steps, and can sometimes seem overwhelming. Having the necessary documentation organized ahead of time can ease the stress of the process and help you be well-prepared when you find your ideal home. If you are looking to purchase a home in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage. We can help you better understand the home-buying process and help you learn more about the documents you will need when purchasing a home.
Documents Needed When House Hunting and Getting Pre-Approved
When you begin applying for a mortgage to finance your home, you will first want to obtain a copy of your credit report. Your credit score will impact the amount of financing you will be able to acquire, so you will want to make sure there is no inaccurate information or errors that could lower your rating. Getting a pre-approval letter is the next step in the process, and allows you to get a good idea of the type of mortgage you can afford and the amount of financing you are able to qualify for. Pre-approval also shows potential sellers that you are serious about purchasing the home. In order to obtain a pre-approval letter, your financial institution will typically require pay stubs, W-2 and tax returns, and proof of additional assets.
Paperwork Typically Needed to Finalize a Home Purchase
After obtaining a copy of your credit report and a pre-approval letter, you will want to procure proof of other documents in order to complete the process of purchasing a home. Lenders want to know that you have a steady income and are capable of making your mortgage payment each month, so you will want to provide copies of your current pay stubs and show proof of income. You will also have to provide tax documentation from as far back as the past two years, including tax returns and W-2s to support your income history. In order to get an idea of incoming and outgoing payments, lenders will want to see copies of your recent bank statements, in addition to documents detailing other outstanding loans, such as student loans, car payments, etc. You will also need to provide documentation of any other additional income or assets you may have, including stocks and bonds, social security, pensions, etc.
Taking Essential Steps To Purchasing a Home
Buying your own home requires a great deal of documentation which can seem stressful initially, but being organized and prepared can help make the process easier. If you need assistance during the home buying process, and have questions about the necessary documentation you will need to provide in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage is here to help. Contact us today for a consultation.