Thursday, September 7, 2017

What You Need for a Home Loan

Buying a home is a major step in many people's lives. While it is an exciting time and a big accomplishment, it can also be a bit intimidating to enter the real estate market. The first step to buying a home at the Lake of the Ozarks is to get pre-approved for a home loan. This step can help you establish your information with a lender and get a rough estimate of what you can afford in a home. Eagle's Nest Realty has dedicated this week's blog to show you exactly what documentation will be needed to start the home loan approval process.

W-2 & 1099 Forms

W-2 forms are required for all people on the loan for the past two years. This can help to prove your income and helps the lender figure out how much of a home payment you can afford. If you own a business, a profit and loss statement or 1099 form will be needed, as well.

Recent Paycheck Stubs

Your most recent paycheck stubs will need to be presented for your mortgage loan. This helps to show that you do have a steady stream of income and can prove how much money you make, giving your lender a good idea of how much of a payment you will be able to handle.

Most Recent Tax Return Statement

Your lender will need to compare your tax return statement to a transcript from the IRS to ensure there is no fraudulent activity taking place with your income. All pages and schedules of tax returns from anyone on the home loan will be required.

List of Debits & Assets

A debt-to-income ratio will need to be conducted with your debts and assets. This shows what money you have coming in compared to debts that need to be paid off. Anyone on the home loan will need to provide this information for the lender to get a solid idea of what home loan amount you can handle.

Proof of Rent or Mortgage Payments

Your current housing situation will need to be analysed. Whether you rent or own, canceled checks may be requested from your mortgage lender. This helps to show how much you are currently paying, which is a factor in how much you can afford for your new property.

Now that you've seen what documents are required to get approved from a mortgage company, you're ready to start gathering these papers. A pre-approval for a home loan can help you in a number of ways. From getting a jump start on the loan process to knowing exactly how much you can afford in a home, it's the best way to go when buying a house. Once you get a pre-approval letter from your mortgage lender, you're ready to start your home search at the Lake of the Ozarks. Contact our team of expert real estate agents in Sunrise Beach, MO to get searching today!

Call (573) 374-0769 to schedule a showing today!

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