Preparing For Your FHA Loan
January 28, 2024
If you are preparing for a new home loan this year, there are many details to remember while you are still in the planning stages.
Once you are ready to start filling out loan documents, your lender will need various information about your pay, financial position, employment, and related details.
Some are fully prepared when they go online to apply for a loan or get pre-approved for a loan. Others aren’t prepared for the level of detail some lenders ask for at this stage.
They don’t know their FICO scores, the specific range of income they bring to the process (including income from investments, rental properties, or other real estate) and can’t answer the basic initial questions until they gather some important documents.
What documents do you need to have ready for the lender to move forward with a loan application?
Identification
Your lender will ask for a current, unexpired state or federal ID card, license, military ID, or other official document proving your identity. Depending on circumstances, you may also be asked to verify your Social Security Number, current home address, and proof of residence in the state.
Employment Documents
Gather your most recent pay information, including pay stubs, W2s for the last two years, and any tax records that can help the lender determine your annual salary and monthly income.
Self-employed applicants should also include profit and loss statements from the last two years and any documents that show “unpaid accounts receivable.”
Financial Documents
Some borrowers aren’t prepared for the lender to ask for bank account information, such as your routing and account numbers. You may be asked to give the lender copies of checking and savings account statements.
Be ready to show proof of investments if you use them to help you qualify for the loan. If you have rental properties, expect to be asked for an appraisal report along with other information on those rentals.
Your lender may require this documentation for any borrower listed on the loan documents. State law, lender standards, and other requirements may apply above and beyond what’s mentioned here.
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Once you are ready to start filling out loan documents, your lender will need various information about your pay, financial position, employment, and related details.
Some are fully prepared when they go online to apply for a loan or get pre-approved for a loan. Others aren’t prepared for the level of detail some lenders ask for at this stage.
They don’t know their FICO scores, the specific range of income they bring to the process (including income from investments, rental properties, or other real estate) and can’t answer the basic initial questions until they gather some important documents.
What documents do you need to have ready for the lender to move forward with a loan application?
Identification
Your lender will ask for a current, unexpired state or federal ID card, license, military ID, or other official document proving your identity. Depending on circumstances, you may also be asked to verify your Social Security Number, current home address, and proof of residence in the state.
Employment Documents
Gather your most recent pay information, including pay stubs, W2s for the last two years, and any tax records that can help the lender determine your annual salary and monthly income.
Self-employed applicants should also include profit and loss statements from the last two years and any documents that show “unpaid accounts receivable.”
Financial Documents
Some borrowers aren’t prepared for the lender to ask for bank account information, such as your routing and account numbers. You may be asked to give the lender copies of checking and savings account statements.
Be ready to show proof of investments if you use them to help you qualify for the loan. If you have rental properties, expect to be asked for an appraisal report along with other information on those rentals.
Your lender may require this documentation for any borrower listed on the loan documents. State law, lender standards, and other requirements may apply above and beyond what’s mentioned here.
------------------------------
RELATED VIDEOS:
Reverse Mortgages Are Ideal for Senior Borrowers
The Pros and Cons of Subprime Mortgages
A Good Faith Estimate Provides Mortgage Information
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