With all the work that goes into finding the kind of home you’ll want to put an offer on, it can be easy to forget about all the little things that happen after the deal has been made. While the paperwork involved in purchasing may seem like a long way off, here’s a quick review of some of the documents you’ll need when the time comes to seal the deal.
Your Credit Report
It’s important to review your credit before putting an offer in, so ensure that you request your credit report in advance and review it for any errors that may be present. If there are any discrepancies negatively impacting your credit score, you’ll be able to have them corrected before they can cause an issue with your real estate purchase.
Pay Stub Proof
In order to ascertain your ability to pay your monthly mortgage, you will need to provide pay stubs from your current place of employment. You won’t want to give away your originals, but a photocopy of your paychecks usually serves as adequate verification.
Recent Bank Statements
The number of bank statements required to prove your credit history may change depending on the lender you’re dealing with, but you’ll probably need photocopies from the last two to three months. This will be a means of proving your financial health as well as your ability to pay your monthly mortgage.
Tax Return Copies
Your federal tax returns will provide further proof of your employment and financial standing, so the last two years of these – complete with your signature – will need to be submitted. Keep in mind that any schedules you’ve filled out to complete your yearly returns should also be included.
Additional Asset Statements
In addition to recent bank statements, if you have any stocks and bonds, mutual funds, RRSPs or other investments, you should also provide statements of proof for these. While these accounts will only require your most recent statements, they will be beneficial in providing a more comprehensive picture of your finances.
There are many aspects of purchasing a home that can be time consuming, but having the documents you need beforehand can save a lot of stress when crunch time comes. If you’re planning on purchasing a home soon, contact your trusted local mortgage professional for more information.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.