![]() ![]() They do this to ensure that you’ll have enough money available to cover mortgage payments in case of a job loss or emergency. Lenders will also need to see bank statements, insurance policies and any investments you have. A month’s worth of pay stubs will give lenders an understanding of your current earnings, while the past 2 years of tax returns gives them a clear picture of your financial health. ![]() Gather pay stubs, tax returns, W-2s or 1099s. Your credit score will determine if you qualify for a loan and what rate you’ll be charged, so you’ll want to make sure the report is accurate. In fact, an FTC study suggests that 20% of consumers may have errors on their reports at any given time. If you notice any errors that may make your credit score lower than it should be, you can correct them before your meeting. Review your credit report before your meeting. You don’t have to bring the credit report to your appointment (the lender will often access it with your permission). If you have a higher score, you’ll get a better mortgage rate. Your credit report works the same way your school report card did-the higher, the better. Make sure you bring your driver’s license, passport or state-issued ID. If you’re purchasing a home with a spouse, partner or significant other, make sure you have these forms for both people: Having all of your paperwork together before you reach out to banks or mortgage lenders will save you the hassle later. Here’s what you’ll need to do: Prepare necessary documentationįirst up? Get a big folder. Unless you have enough money stashed to pay solely in cash and upfront (which not many people do), getting a mortgage is a key step to buying a house. Qualify to buy a houseĪ mortgage is a loan that a bank or mortgage lender gives you to help you buy property. Understanding the mortgage application process and going into it prepared can help you get the lowest interest rate, which can help you save money over time. It’s time to apply for a home loan and learn how that affects your savings. But hold on: Before you start touring homes, tackle the next “to do” on that list of requirements to buy a house. And now you’ve begun fantasizing about stainless steel appliances and a sun-filled sitting room. Congrats-you’ve cleared the first big hurdle of home buying. The funds for the down payment are in your savings account. This is Part 2 of a 5-part series in our first-time house buyer’s guide. ![]()
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