Prepare Your Finances Before Buying Your First Home
Thinking about buying your first house? Even if you’re just curious, some real estate agents require proof of pre-approval before they can show you certain homes. To make the preapproval process seamless, your loan officer might request you provide the following documents:
- Your credit report – Obtain a copy as early as possible and review it for accuracy. If time permits, pull your credit report three months before you seek pre-approval, so you have time to correct any issues or mistakes. Each major credit bureau must provide one free credit report annually to consumers requesting a copy. To obtain a report, visit annualcreditreport.com. Your goal is to identify discrepancies between the reports as well as to monitor your credit standing.
- W-2 forms – Make copies from the past two years.
- Paystubs – Copy your two most recent ones.
- Financial account statements – Collect statements (including retirement accounts) from the past few months.
- Lines of credit – If you have opened any in the past six months, you’ll need copies of those statements as well, since they might not show up on your credit report.
- Information on vehicles you own – Include make, model, and resale value.
- Credit card account information – Include numbers and types of cards, balances and minimum payments.
- Auto-loan account information – Include account numbers and statements.
- Other loan account information – Think student loans and personal loans.
- Gifts – If you’re fortunate enough to have any money for your down payment gifted to you, identify how much and where it will come from. Be prepared to document that it’s a gift and not a loan.
Once you have all your documents and personal financial information assembled, you’re ready to get pre-approved at Resource One. Stop in or apply online today.
