Gathering the paperwork you’ll need for the application process can be a tedious job. But imagine that you’ve found the perfect home, you’re ready to apply for a loan and when the lender asks for that W2 and you can’t find it. Now what? You have to track down a copy. All the while your application is on hold and with each day that passes, someone else could be bidding on your home. Let’s make sure this doesn’t happen.
Use this checklist to organize your paperwork before you find a home. It may be a boring task today, but it’s better than a stressful ordeal tomorrow.
- W2 earning statements or 1099 DIV income statements for the lasttwo years
- Federal tax returns for the last two years
- Bank statements for the last few months – showing a balance greaterthan or equal to the amount you’ll need for the down payment.
- Recent paycheck stubs
- Proof of other income, such as tips, Social Security payments, etc.
- Proof of investment income if applicable
You may be asked for additional documentation, but having these documents will surely speed up your application. Of course, the best way to avoid any delays during the application process is to get preapproved. You’ll still need to gather these documents for the preapproval process, so set aside a couple of hours and get it over with – you’ll be glad you did.