Getting preapproved for a mortgage might feel like a Homeland Security interrogation. Be ready to disclose just about every financial hiccup you have ever had, and bring your whole filing cabinet of financial documents. The days of stated income or NINA loans (no income, no assets) are long gone. Every program has slightly different requirements, but here is a list of the most common documents your lender will require:
• Driverʼs license or state ID card
• Last two yearsʼ tax returns (include business returns if you are self-employed or have commission; Rural Development loans also require tax returns)
• Last two yearsʼ W-2s or 1099s
• Two most recent pay stubs
• If you have overtime, commission or bonus income, bring the last two years’ final pay stub of the year
• If there is a past bankruptcy, you will need your bankruptcy discharge documents
• If there is a divorce and/or child support, you will need your divorce decree and, if applicable, the child support order along with a 12-month payment history
• If you own other properties, you will need to bring in a current mortgage statement and a homeowners insurance policy
• Past two months of bank statements from any accounts that will be used to provide funds
• Assets statements for retirement accounts for reserves
Coming into a preapproval with these items will help your loan officer give you a more accurate analysis of what price range and loan program you are qualified for. There is room for too many surprises when a lender receives information just verbally. Calculating income can be a complicated process when including bonuses and commission, especially for self-employed individuals.
Get an advantage over other buyers and have a complete approval before even looking at houses. This will save everyone time and money in the long run.
Cason Home Loans – Full-Service Mortgage Lender
Open The Door To Your Dreams
At Cason, it’s a new day in home loans!
In an industry that can be so misleading, we pledge to be honest and upfront so that your mortgage needs can be met and you walk away telling others about Cason Home Loans.
Amber L. Sabo-Carpenter
Senior Loan Officer // Purchase Specialist
The Jeff Stephenson Team
NMLS# 1216443 // Cason Home Loans // NMLS# 162651