Items Needed To Apply for a Home Loan
Applying for a home loan in Texas these days is not for the “weak at heart”! It is a pain-in-the-neck process no matter how much money you have.
NOTE: Read The Perfect Loan File on Forbes for details.
There is a lot of paperwork required in order to obtain a home loan. Plus, you will have to provide much of the paperwork multiple times throughout the loan process because of new lending standards. Lenders are now required to verify certain items several times through the process…so don’t get offended or frustrated when they ask you for something that you have already provided them.
Here’s what you will probably need:
- Proof of identity for borrowers including driver’s license and Social Security number.
- Address history for three years.
- Copy of tax returns for past 2 years.
- Banks names and numbers for all checking and savings accounts.
- Bank statements for the past 3 months.
- Documentation of all income including pay stubs for past 2 months.
- Proof of bonuses for 2 years if applicable.
- W-2 forms showing income for past 2 years.
- Job history for past 2 years.
- Net worth sheet with list of all assets and liabilities including account numbers.
- Most recent 401K statements and other retirement accounts.
- Copy of gift letter if applicable.
- If self-employed, copy of balance sheet.
- Divorce decrees if divorced in the past 2 years.
- Proof of residency, if applicable.
- College transcript if you were a student in the past 2 years.
- Bankruptcy discharge papers, if applicable.
Home Buyers: What Not To Do
Maybe you’ve just gotten married. Maybe you got a raise … or maybe you’re just plain sick of renting. Whatever the case, you’ve decided that it’s time to buy a house. You’ll be given all kinds of advice and pointers about what you should do and how you should do it, but there are things you shouldn’t do that are equally important.
Don’t be deceptive or dishonest when you’re filling out your loan application. Even if you get away with fudging the numbers a little to secure a higher loan (which is loan fraud), what’s the payoff you’re looking for? A monthly payment that you can’t truly afford?
Avoid moving your money around. To eliminate potential fraud and provide a degree of quality control, a lender will review the source of funds for your down payment and closing costs. Most likely, you will be asked to provide recent statements for any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stocks, mutual funds, and even your 401K and retirement accounts. If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them, which could make it more difficult for the lender to document properly.
Once you’ve been approved for a certain amount, resist the temptation to make any big purchases that could affect your ability to service the loan. Examples might be a new car, a boat, or expensive furnishings.
Sure you may be able to afford the mortgage and a car payment, but what if an unexpected expense comes along that causes your monthly budget to become unbalanced—you’ve got a shiny new car, but you may have trouble affording that and gasoline, and the mortgage, and the utilities. You’re caught in a situation where you’ve over-extended yourself. Even if you’re able to make it work on a month-to-month basis, you may have trouble putting money to your savings account.
Sometimes, knowing what not to do is just as important as knowing what to do. Your Texas REALTOR® can help guide you through the home buying process.
Please share this info with your Friends!
Amazing Real Estate Tools – To Improve Your Journey
Featured Sugar Land Neighborhoods
If You Think This Website is Great, Wait ’till You Get Me As Your Agent!
Candid Advice—I promise to give you candid advice on all homes and areas so you can make the best decisions. I won’t ignore potential defects that can cost you money, or effect your resale value, in the future. My job is to protect you from defective homes as much as possible while helping you make a sound financial investment. (Read client testimonials)
Local Area Expertise—This isn’t just my business…it’s where I work and live (for 20 years) so I really know the area. I will help you narrow your options and find the best neighborhood for you based on your specifications. For long-term resale value, the neighborhood you choose is just as important as the home you buy. (Download my Ultimate Sugar Land Guide)
Great Data—I will give you the most in-depth data you have ever seen…to help you make the wisest decisions. This includes a professional CMA when you are ready to purchase a specific home…so you don’t pay too much. Plus, my proprietary House Report (see sample) includes the data and information you need to ensure that you are making great home purchase. (Also see Pricing a Home Correctly)
Best Home Searches—Yes, you can search on your own, but no other home search available can filter down to the school level…and filter out the subdivisions that may be known to flood. Tell me exactly what you want, and I can narrow down your options better than any search you have access to. (Request a Custom Search)
Easier Process—Moving your family (and possibly changing jobs) is stressful enough. I’m your transaction manager and will guide you, step-by-step, through the process so you never miss an important deadline. I assist with inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, title company, and more. (View helpful videos on my YouTube channel)
Network of Experts—My network of experts can make your transition to the area as smooth as possible. Need a painter, electrician, mover, insurance company, etc.? I can help!
How I Work to Protect You
My job isn’t “just” helping you find a house to buy…I’m helping you buy a home. There are over 100 tasks that I perform for you during the purchasing process. I’m looking out for you every step of the way and keeping my eye on the listing agent, the seller, the builder (if applicable), the lender, the inspector, and the title company. I’m on your side because I’m YOUR agent. I help with price analysis and negotiations, legal paperwork, inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, and more. I have the expertise to help solve complicated problems that often occur in the process. Real estate is a huge financial and legal commitment. Don’t you deserve to have a Five-Star real estate agent on your side?
Take a look at a sample House Report that I do for my clients. This is the extra “due diligence” I do for you, to make sure that you are getting a great home. This is when I triple check taxes, schools, aerial maps, sex offenders in the area, flood zones, etc. NO other agent in the world does this! Check out p. 27 regarding the sample Flood Map info I provide.
Learn Something New – View My Videos!