Are you ready to make your dream home purchase a reality? That’s awesome news! Acquiring a house of your own is one of the best ways to secure your family’s future. However, if you cannot afford to pay for a house in full, what other options do you have?
Thanks to home financing, you can now borrow funds from a reputable lender for you to finally buy your starter home. If you’re a first-time homebuyer, it is worth noting that every lender has different requirements for buying a house in Texas. What financial documents you need to bring will depend on the type of mortgage you’ll be applying for and what your lender will require you to provide. However, the following are some of the requirements you’ll need to prepare to get approved for a mortgage.
Social Security Number
Everyone has their SSNs. This is the 9-digit number issued by the US government to all citizens of the United States and those residents who applied for it. This is what the US government will use to track all of your earnings and the number of years worked. If you’re the only one applying for a mortgage, then your social security number alone is enough. However, if you and your spouse are asking for the home loan, both of you are to provide your SSNs.
Recent Bank Statements
You will need to provide six months worth of your recent checking and savings account statements. This will enable your lender to check your monthly income, to see if you’re capable of paying off the loan. This will reveal your ability to pay not only for the monthly mortgage payment but to verify if you have enough funds to pay for the down payment out of your bank accounts.
Proofs Of Income
You are required to provide pay stubs, paychecks and other proofs of income to show your lender what your financial health is for the past month or so. Borrowers should list down all sources of income and show direct deposits, 1099 forms, etc. to prove you are financially stable enough and qualified for the mortgage.
2 Years Worth Of Income Taxes
Lenders will need to see how consistent your annual income is, compared to the proofs of income you will be providing. They can do this by requesting a copy of their borrower’s tax returns from the Internal Revenue Service. One only needs to sign Form 4506-T and your lender will be the one to request two years worth of your income taxes.
Good Read: Ten IRS Rules For Amending Your Tax Return
Name And Contact Details Of Your Employer
To verify your employment status, you will need to provide your employer’s name, address and contact details. You can provide a contact person on behalf of your employer who is eligible to confirm your employment status. It would be best to retain a position on your company for at least two years to get approved for the home loan.
Good Credit Score And History
Your credit history and score are also some of the factors your lender will check to see if you’re qualified for a mortgage or not. The required credit score will depend on the type of home loan you’re applying for, but you’ll need at least 580 FICO score to qualify. Also, good credit history will help you get approved since this will tell your lender how good of payer you are when it comes to debts.