Gather and prepare the below items to simplify the loan application process:
- Proof of Income: This may include your most recent two months of pay stubs, previous year’s tax returns, and W-2 forms.
- Proof of Employment: You’ll need the name, address, and telephone number for any employers you’ve had over the past two years. You may need to provide a letter from your employer or HR department confirming your current employment and salary.
- Credit Report: A lender will likely request a copy of your credit report to assess your creditworthiness. Be mindful when applying with more than one lender that time is of the essence.
- Bank Statements: You will provide your two most recent bank statements for any accounts that you have, such as checking and savings accounts.
- Asset Documentation: This may include documentation of any investments, retirement accounts, or other assets that you have.
- Debt Documentation: You may need to provide documentation of any debts that you have, such as credit card statements or student loan statements.
- Down Payment Documentation: If you are making a down payment on the home, you’ll need to provide documentation of how you will be paying for it. Where are the funds coming from?
If you apply with more than one lender and require multiple credit checks, don’t worry – this will not negatively impact your credit score as long as they are performed within a reasonable timeframe. In fact, according to Experian, FICO considers loan-related inquiries that occur within 45 days of each other as a single inquiry when determining your credit score. This means that getting multiple credit checks for the same purpose should not have a negative effect on your credit.
