So you want to buy a house, huh? Well great news, rates are at historic lows and there are really good deals available! Lets go look right now!!
Hold-up just a darn second! Aren't you forgetting something? GET PRE-APPROVED! Curious as to what you need in order to apply for a loan and get pre-approved? Here are some things you are going to need to bring to the lender:
1. Complete the Loan Application (Form 1003) - most important document in the process. Make sure to include your job history of at least 24 months, residence history, reoccurring debt (child support, alimony, etc.)
2. Complete IRS Audit (Form 4506T) - this form audits income and protects against fraud!
3. Sign "Consent for Credit" Form - allows lender to verify employment, credit balances, deposits, etc.
4. Last 2 Years of W2's - must include all W2 income used for qualifying...sorry drug-dealers
5. Qualified Paystabs from last 30 Days - payrate/salary, year-to-date income, employee ID, etc.
6. Qualified Asset Statements - Bank Statements, 401k, etc. - things that can be used as reserves or for down payment
7. Disclosure of Down Payment Source(s) - must disclose the source of all down payment and closing costs at time of application!
8. Disclosure and Thorough Documentation of any/all Credit Issues - if required, explanations must be in writing from borrower.
Obviously, certain requirements may be slightly different depending on which lender you decide to go with but this information should give you a general idea of what the lender/mortgage officer will be asking for.
- Affordability - You wont spend wasted time looking at homes you like to finally discover you can't even afford it. This will help narrow the search.
- Negotiating Power - you look much more appealing to a seller when your financing ducks are all in a row. The seller is more likely to pick you over another unqualified buyer and/or may even be more flexible on the price.
- Time - once you have an accepted contract on your hopeful new home, the paperwork can begin to get processed so you can start working towards closing. If you had not been pre-approved then you would have to start the process from Step 1 which could take longer.
Sean S. Williams
Licensed Broker, Realtor®, ABR®, e-Pro®
1st Time Buyer & Relocation Specialist
of Louisville, Kentucky
"Eat. Sleep. Real Estate."
*Serving the Louisville, Kentucky & Surrounding Areas.
Trust in a dedicated Real Estate professional to cater to your needs.
Accredited Buyer Representative® , e-Pro®, First-Time Home Buyer Specialist & Louisville Relocation Specialist.
I would love to assist you today!*