1-2 Years of W-2’s
A W-2 helps prove that you do bring in enough money, over the past few years, to make your new mortgage payment. Your lender may ask to see the most recent 1 or 2 years’ worth of W-2 documentation. A W-2 also gives your lender an idea of different jobs you have held recently to check for stability.
Typically, you are asked to provide one month of paystubs, but more may be required. Paystubs help to verify income. With a number of businesses paying via direct deposit, paystubs can be requested from the HR department or via an online portal.
2 Years of Tax Returns
A complete tax return will be requested when applying for a mortgage loan. The returns will be looked over for unreimbursed employee business expenses, self-employment business losses, and signs of fraud. Your mortgage lender may also order a 4506-T form from the IRS. The IRS will send their copy of your tax return to be compared to the form you provided.
A bank statement will be requested, usually 1 or 2 months’ worth, for the lender to see your spending habits. They will typically look at money going in and out of the account, to ensure there is no unaccounted-for cash flow with your accounts.
List of Debts
A mortgage lender may ask for a list of debts you have incurred. This will include credit cards, car loans, student loans, and home loans. This will give your lender an idea of your financial responsibilities, to help keep you from getting over your head with a mortgage loan.
Copy of Earnest Money
Once you put an offer in on a home, you will need to provide a copy of the cancelled earnest money check. This helps show everyone in the process that you are serious about purchasing a home.
-Profit and loss statement, if you own a business.
-Proof of pension income, if applicable.
-Dividend earnings, if you invest.
-Proof of gifted money, if you have received any money other than normal paychecks.
Now that you know what documentation is needed, you are ready to start your search for a home at the Lake of the Ozarks. Here at Eagle’s Nest Realty, we are here for our clients from start to finish in the home buying process. If you are interested in buying a home at the Lake of the Ozarks, we would be pleased to help guide you through the necessary steps. Give us a call at 573-280-0769 to being your home search today!