Purchasing a house can be an exhilarating yet intricate process that encompasses various legal obligations.
To fulfill these obligations, you will be required to provide several documents to your lender and the seller. The specific documents needed may vary depending on the lender and the type of loan you are applying for. Here are some of the most common documents you may need:
- Proof of Income: This entails pay stubs, W-2 forms, and tax returns from the previous two years to verify your income.
- Bank Statements: You must provide bank statements from the past two to three months to demonstrate your savings and checking account balances.
- Credit Report: Your lender will obtain your credit report to evaluate your creditworthiness and determine your interest rate.
- Employment Verification: Your lender may contact your employer to confirm your employment status and income.
- Loan Application: This is the initial step in the mortgage process, requiring detailed information about your income, assets, and debts.
- Pre-approval Letter: After submitting your loan application, you may receive a pre-approval letter from your lender, indicating the amount you are eligible to borrow.
- Loan Estimate: This document provides an estimate of the closing costs associated with your mortgage, along with details like the interest rate, monthly payment, and other loan specifics.
- Closing Disclosure: Given three days prior to closing, this document presents a comprehensive breakdown of all the costs related to your mortgage, including the interest rate, monthly payment, and closing costs.
- Identification: You need to provide a government-issued ID, such as a driver’s license or passport.
- Purchase Agreement: This legally binding contract between you and the seller outlines the terms of the sale, including the purchase price, closing date, and contingencies.
- Mortgage Documents: If you are financing your home purchase, you will need to sign various mortgage documents, including a promissory note and a mortgage agreement.
- Deed: The deed is a legal document that transfers ownership of the property from the seller to the buyer.
- Title Report: This report presents the ownership history of the property, as well as any liens or encumbrances that might affect the title.
- Homeowner’s Insurance Policy: It is necessary to obtain a homeowner’s insurance policy to safeguard your investment in the property.
It is crucial to carefully compile and review these documents before submitting them to your lender. If you have any inquiries or concerns, seeking guidance from a real estate attorney or another qualified professional is advisable.
