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What Documents Should You Prepare before Buying a Home?



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By : Faith Warner    99 or more times read
Home buying requires you to dedicate most of your time and effort to fulfill the entire process. Aside from the tedious process of finding a good real estate agent, locating a perfect home, and thinking of a good offer for the house, you would also need to prepare proper documentation after the initial home buying steps.

If you do not have any idea about the required documents in buying a home, you should read this article. It shares some of the most important requirements that you should prepare before facing your seller and lenders.

Secure a certified mortgage approval

Before convincing your seller to accept your offer, you should first make sure that you could present him a copy of your mortgage approval. Keep in mind that your seller would be more comfortable to start a real estate transaction with you if you were able to get a certified mortgage approval. Once he sees this document, he would immediately feel ready to offer you his home.

Since a mortgage approval includes an itemized list of how much money you would get from your lender, it could serve as a proof that you could immediately pay the price of the house you have been eying.

If you want to secure a mortgage approval, you would also need to prepare important documents that your lenders would demand from you. Here are some of the requirements that you should prepare.

Collate your financial documents

During the screening process, your lender would ask you for valid identification cards in order to serve as a proof of your identity. Aside from this, your lenders would also use your financial records as a way to assess your credibility as a borrower.

One of the most important financial documents that you should bring with you is your IRS W-2 Form. This reflects the amount of tax that you are paying every month, as well as your income from your job. Your pay stubs would also come in handy. These documents show your dedication to your job and reflect how much money you are making on a regular basis.

If you are already married, do not forget to include copies of your partner’s pay stubs in your portfolio. The income of your spouse would be added to your available income, hence increasing your chance to qualify as a credible buyer.

Pull out your credit reports

Credit reports are also important requirements during a home loan application. These documents show lenders the kind of personality that you have when it comes to juggling financial obligations. Keeping your credit records clean or fixing bad credit before your mortgage application is definitely a must. Remember that your lenders would never approve your application once they see bad financial-related habits in your credit reports.

Find a homeowner’s insurance policy

Never ignore the need for a reasonable homeowner’s insurance policy. Keep in mind that this document also serves as an assurance for your lenders. Your insurance would immediately cover any damage incurred by your house, hence freeing your lenders from any possible loss of profit.

These are the most important documents you should prepare before facing your lenders and sellers. Once you follow the tips on this article, you would immediately become a few steps away from your new home sweet home.
Eco-Friendly Lakewood Real Estate, Lakewood Homes for Sale with Pools and Lakewood Homes with Views can offer you a whole deal of information about the real estate market. Whether you want to sell your house, buy a property or rent one, getting all the information that you need will give you a great advantage.

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