Are you thinking of purchasing a home? Make sure you are ready to work with a banking partner that you are comfortable with. To prepare for your first meeting with a lender, here are a few tips:
Know your budget
- Have an idea what you would like to pay for your new home, or an idea how much you are willing to pay per month.
- Determine how much money you are willing to pay toward a down payment and closing costs.
Gather the documents a lender will need:
Identification – The bank needs to know who you are
- Government ID for all borrowers
- Know your personal information (previous addresses if lived in current residence under 2 years)
Income – The bank needs to know how you plan to pay each month
- 2 year’s W-2s
- 3 months paystubs
Self-Employed or 1099 worker:
- 2 years’ tax returns
- Up-to-date income statement and balance sheet for self employed
- Most recent paychecks or paystubs if 1099
Assets – The bank needs to know where your down payment and closing costs will come from
- 3 Months’ bank statements
- Statements for any other large balances that may be available
- Gift Letter – If the funds used for initial payment will come from someone else, a gift letter is needed
Find the right lender
- Don’t be afraid to ask questions, or walk away from a lender or institution that does make you feel comfortable. You want a lender who will be your partner. Look for a person who is open to answer questions about any mortgage terms you are unfamiliar with, and who is excited to help you reach your goals.