A typical mortgage lender in cities like Kingsport will require you to submit several documents before they approve your loan application. They will then review the records to see if you’re fit enough to qualify for a mortgage.
So, we’ve summed up the basic types of documents that lenders may request from you to make the process much easier.
Proof of income
One of the fundamental information that lenders will require from you is your proof of income. You may submit your pay stubs, W-2 forms, and tax returns as a proof of how much you earn.
However, the lender may ask you for additional paperwork, depending on the size of the loan that you’ll apply for or even your income history.
You have to create a complete list of all your existing debts together with the breakdown of your current balance and also the monthly required payments. Keep in mind that your existing debts can affect your debt-to-income ratio, which is a crucial factor in your credit score rating.
So, if you’re spending more than what you earn in a month, lenders will be less likely to approve your loan with low-interest rates.
Aside from your existing debts and proof of income, another information that lenders will ask from your is a list of all your assets. It should include your bank statements for the past three to six months, retirement accounts, real estate, and investment records.
Ensure that you have more than sufficient balance in your savings account before your loan application. Lenders will most likely check your savings account if you have enough funds to cover any unexpected expenses that may happen once you’re already living in the house.
It’s always best to coordinate with either your broker or your lender before you decide to apply for a home loan. Doing so will help you prepare the necessary documents beforehand which can speed up the process and approval.