Once you’re serious about a property, and ready to move forward with a pre-approved offer, you will need to contact your mortgage specialist to take the next steps. This is different from your pre-qualification letter you may have received after a quick question and answer session with your mortgage specialist. Here are some items that many lenders will require from you at this point:
- The last two years of your tax return -all pages
- Proof of gross monthly income for the past 30 days.
- Proof of investment income, including rental incomes.
- Financial statements from the last two months -and possibly all your retirement and/or investment accounts
- A list of creditors, including account numbers, balances, and monthly payments.
- Everyone whose name will be on the loan needs to provide a photo ID.
- Proof of homeowners insurance -you wont get mortgage loan without this first
- Written verification of your position and salary
- Lenders might request canceled rent or utility checks from first-time buyers to prove you have a history of on-time payments, according to the Consumer Financial Protection Bureau.
- If someone is giving you a financial contribution to help cover closing costs or a down payment, you’ll need to provide a “gift letter” from the donor stating the amount, that the funds were a gift and do not need to be paid back.
- If you are self-employed you will have to provide copies of your 1099 forms from the IRS to your lender. These forms show how much money you were paid as an independent contractor from various clients during a year. These forms, combined with your last two years of tax returns, will help prove that your self-employed income is steady. Customers who pay you $600 or more in a given year are required to send you a 1099 form.
Keep in mind, this is only a general list of required items. Each lender and loan program may require different documentation than listed here. However, preparing the items in this list in advance will save you valuable time when you’re finally ready to make an offer on your dream home.