Documents needed for your purchase

Most types of loans today require all your personal information upfront for the pre-approval and approval. Here is a list of the most common documentation asked for a real estate purchase or refinance.

  • 2 years Federal Tax returns
  • 2 years W-2's
  • 30 days of paycheck stubs
  • 2 months of bank statements
  • 3 months (last quarterly statement) for retirement assets
  • Driver Licenses and Social Security Cards
  • Letters of Explanation (LOE's) for:
    • Credit inquiries and any new debt 
    • Names and addresses on the credit report
    • Non-payroll deposits (including copies of checks)
  • Mortgage statements for all properties owned
  • Homeowner insurance for all properties owned
  • Lease Agreements if the rental property is not reported on the last tax return
  • Any documentation related to a foreclosure, short sale or bankruptcy

Ultimately, your individual scenario will determine what items you need to provide.  Contact us with questions about your loans scenario and documents you might need. 

Home buyer Tips

Follow these simple steps to help you get ready for your home purchase.

1) Get pre-approved.  

For most buyers a pre-approval is free...and they should be. However, it is not uncommon to find lenders charging an upfront fee. It is not a mistake to pay for an application fee, but you do get tied financially to that lender because most upfront fees are nonrefundable and the buyer rarely shops elsewhere once they make that payment. The most common mistake a homebuyer can make is not allowing the loan officer to complete a full analysis because the loan officer is too caught up in trying to make you feel like the process is not that intense. In fact, they are doing you a disservice by not completing a proper evaluation of all of your factors and leaving your scenario open to misinterpretation and mistakes. Why spend all that time and effort finding a house and getting the offer accepted just to find out the loan was declined because of sloppy loan officer?

Contact us for a free consultation or preapproval

2) Understand the loans available to you.  

Sellers are looking for the best offer on the table in this type of market.  Understanding your loan parameters can make all the difference when choosing the right priced home in the first place and even when submitting counter offers. 

The best example of how a deal can go sideways is when the appraised value comes in lower than the purchase price. When this happens, the buyer still has to come up with the additional funds for the seller. And if the buyer only has 20% down, now the down payment equals a lesser percentage.  Was the buyer qualified for a loan with mortgage insurance or a combo first and second?

The last thing you want to happen is to not know your limitations when you have found the right house.

3) Find a realtor.

There are many ways to find a realtor.  Referrals from family or friends seem to be the most common, but are generally not considered the best source. But, no matter how you find your realtor, make sure you like them and real estate is their full time job.

Other tips:

1) Using a realtor that lives in the area you want to buy in. This is considered the most reliable way to find a realtor that can achieve your goals.  And if you can find a referral from a trusted source for a local realtor.....that is the best combination.

2) Using the listing agent for a house that you find.  This can be a double edge sword. On one hand, the listing agent may be able to negotiate a lower commission, which appeals to the seller. On the other hand, you may not have a realtor working on your behalf protecting you from paying too high of a price. It has always been said that you should have a realtor representing your best interests

3) Choosing a company in the market area you are buying.  A real estate firm that has been established in a neighborhood for many years has many advantages...1) the know the area very well 2) they know the other agents in the area 3) they may know when new listings are coming on the market. 3) and if the company is large enough, they may even have  homes "coming soon" that could match your parameters. 

However you choose a realtor to represent you, market conditions demand that a realtor has good communication with your loan officer. One sure way of ensuring that relationship is to get a referral from your realtor 

Contact us to see if we have a referral in your market.

What is the right loan for you?