Finding a lender that will provide you with a home loan is only part of the process. You need to have all of your paperwork in order. You need to have documents that will be necessary to go through the approval process, documents that will be requested. By having all of these ready to go, it will accelerate the process by which lenders can make a decision. Whether you are contacting individual lenders or working with a mortgage broker, all of this information still needs to be provided. Here is a quick list of the documents that you will need if you are looking at preapproval options offered by lenders nationwide.
Why Having These Documents Ready Is So Important
One of the main reasons that people are not able to purchase a home that is currently on the market is not the lending and approval process does not go smoothly. They might bring in some of the documents that are necessary, but by making the potential lender request additional information, you could be delaying your approval for several weeks. Speed is of the essence in the real estate industry, and these are the documents that you need to have ready.
Documents That You Will Need
Some of the documents that you will need will include but are not limited to, your Social Security card. You need to show proof of employment which can be a copy of a check that you received from your employer. Proof of income will also be on this check, and they will also request bank statements to show that you are getting regular deposits. Tax documents are also necessary. This will give them an overview of how much money you do make, allowing them to come to a decision. If you currently rent or own, they need to know where this is. This may influence their decision significantly. For example, if you own a home, they can see how much the home is valued at by doing comps of similar properties in the area, plus they can find out how much equity you have in that home. Finally, you need to have your credit information ready. This may not be necessary because all of them are going to do a credit check. Last but not least, you should have a purchase agreement signs and ready to go in case the approval goes through.
Why Is All Of This Paperwork Necessary?
The reason that this paperwork is necessary is that all lenders will require this information to verify your financial situation. In the world of lending, they are only concerned with a couple of things which will include your credit score, whether or not you are employed, and how much debt you have. If you do not have all of this information, it can make it very difficult for you to apply for and receive a loan. By having all of this ready, you can ensure that the loan process will go through as quickly as possible, something that may be very necessary if you are trying to get a home currently on the market.
Although it was once possible to get what were called no doc or low doc loans in the past, these are not available today in most cases. The banking fiasco from years ago was the result of many people getting loans for substantial amounts of money, loans that they simply could not make the payments on. Although this was typically based on home loans with flexible interest rates, they still need to know that you are fully capable of making these payments. If you can do this, you will soon have the ability to get a home loan because you are providing all of the necessary documentation.