How to Complete Paperwork to Finance a Home

There is typically no greater investment than that of a home. One's largest bill is usually a mortgage payment. If you have found that perfect home and are ready to buy, this is the next stop for you. In order to speed up financing, you need to have your paperwork ready. The more you are able to gather, the easier it will be for you and your lender. In order for the lender to give you the amount you desire, they need to know your assets, debts, income and credit history. The following will help you prepare for the purchase of your new home.

Instructions

Difficulty: Moderate

Things You’ll Need:

• List of creditors and amount owed
• Investment documentation
• Canceled checks
• Home sales contract
• Bank statements
• Federal tax returns
• W-2s
• Pay check stubs

1. Retrieve the last two years of Federal tax returns.
2. Find your W-2s for the last two years. Remember to include those for anyone else who will be purchasing the home with you.
3. Include in your package to the lender three to four recent paycheck stubs for all purchasing parties.
4. Provide any other proof of additional income.
5. Write down a list of your creditors, their balances and the amount paid to each on any given month.
6. Provide proof of investments such as savings accounts, stocks, bonds and 401k accounts.
7. Include bank statements showing your current mortgage or rent payments. This also shows the lender your spending habits.
8. Attach a copy of the new home sales contract showing the purchase price.

Tips & Warnings

• Provide all of the financial information about yourself as possible.
• Do not take personally anything the bank asks from you. They have an invested interest in loaning you such a large amount and need assurance that you are capable of paying them back.
• The lender may require additional documentation.