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Loan Documents

Buying a home is a significant financial commitment. It requires careful planning, preparation, and documentation. In this article, we'll take a closer look at the different types of loan documents you need to submit for a home loan.

Income Documentation

Your lender will require proof of income to determine whether you're capable of paying back the loan. The documentation you need to provide typically includes your W-2 forms, pay stubs, and tax returns from the past two years. If you're self-employed, you'll need to provide a profit and loss statement, business tax returns, and other relevant documentation.

Employment Verification

Your lender will also want to verify that you have a stable job and income. They'll typically request a verification of employment from your employer. This document should include your job title, start date, and salary information.

Credit History

Your credit history plays a significant role in the mortgage application process. Lenders will review your credit score and credit report to determine your creditworthiness. You'll need to provide permission for your lender to pull your credit report, which will show your credit history, outstanding debts, and any negative marks such as late payments or collections.

Assets and Liabilities

Lenders want to ensure that you have enough assets to cover the down payment and closing costs. They'll ask for bank statements, investment account statements, and any other documentation showing your assets. They'll also review your liabilities, including credit card balances, car loans, student loans, and other debts. You'll need to provide documentation for each of these debts.

Other Documents

In addition to the above documentation, your lender may require additional documents based on your specific situation. For example, if you're receiving gift funds for the down payment, you'll need to provide a gift letter and documentation showing the source of the funds.

While documentarian is a necessary part of applying for a home loan, your loan officer will guide you every step of the way, explaining why documents are needed and the timelines. To start your loan application, contact us at HomeTown Lenders NW!


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