Buying a house can be an exciting but complex process that involves many legal requirements.
You will need to provide several documents to your lender and the seller. The specific documents required may vary depending on the lender and the type of loan you are applying for, but here are some of the most common documents you may need:
Proof of Income: This may include pay stubs, W-2 forms, and tax returns from the past two years.
Bank Statements: You will need to provide bank statements for the past two to three months to show your savings and checking account balances.
Credit Report: Your lender will obtain your credit report to assess your creditworthiness and determine your interest rate.
Employment Verification: Your lender may contact your employer to verify your employment and income.
Loan Application: This is the first step in the mortgage process, and it will require you to provide detailed information about your income, assets, and debts.
Pre-approval Letter: Once you have submitted your loan application, you may receive a pre-approval letter from your lender, which will state the amount of money you are qualified to borrow.
Loan Estimate: This document provides an estimate of the closing costs associated with your mortgage, as well as the interest rate, monthly payment, and other details about the loan.
Closing Disclosure: This document is provided to you three days before closing and includes a detailed breakdown of all the costs associated with your mortgage, including the interest rate, monthly payment, and closing costs.
Identification: You will need to provide a government-issued ID, such as a driver’s license or passport.
Purchase Agreement: This is a legally binding contract between you and the seller that outlines the terms of the sale, including the purchase price, closing date, and contingencies.
Mortgage Documents: If you are financing your home purchase, you will need to sign several mortgage documents, including a promissory note and a mortgage.
Deed: The deed is a legal document that transfers ownership of the property from the seller to the buyer.
Title Report: A title report is a document that shows the history of ownership of the property and any liens or other encumbrances that may affect the title.
Homeowner’s Insurance Policy: You will need to purchase a homeowner’s insurance policy to protect your investment in the property.
It is important to compile and review these documents carefully before submitting them to your lender. It is also wise to seek the advice of a real estate attorney or other qualified professional if you have any questions or concerns.
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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.