By the time you’re ready to buy a home, you’ve probably made a number of significant purchases.

Maybe you bought a car or got married, or you invested in your education. But buying a home is different, because it’s usually the biggest financial decision you’ll ever make. In this area, even a modest starter home is hundreds of thousands of dollars.

That’s exactly why your mortgage requires so much information and paperwork! Buying a home is a really big deal for you, and it’s a really big deal for your bank or credit union, too. The bank wants to know that you’ll definitely be able to make your mortgage payments on time and in full.

Here, we’ll give you an idea of what information you’ll need to provide for your mortgage. If you can gather this in advance, it will help the process go more smoothly.

• Paystubs: The lender will want to know that you currently have a job, and how much you get paid. If you’re self-employed, you’ll need to be able to prove through bank statements and taxes how much you pay yourself, and show that your business is healthy and growing.
• Tax returns: Be prepared to turn over the past three years of tax returns to your lender, so they can see all of your financial commitment, past salaries and investments and get a more complete picture of your financial history.
• Bank statements: The lender will want to see bank statements from the past few months from all of your bank accounts, both checking accounts and saving accounts, at all of your financial institutions.
• Retirement and investments: Get statements from your retirement and investment accounts to show your lender.
• Debt: Some lenders will want to see current statements from your major debts, including student loans, car payments and credit cards.

A word of advice: Once you start the mortgage process, think very carefully before you make any major financial moves. This is not the time to switch jobs or make any big purchases aside from the house itself, including buying a car, buying furniture for your new pad or buying all new appliances. While those may be necessary, it’s best to wait until after you close on your property.

While gathering all this paperwork might be annoying, it’s very important as you enter into a long-term relationship with your mortgage lender. To learn more, schedule a one-on-one consultation with one of our Mortgage Loan Officers.

We’re here for you, for life, and for all of your biggest and best financial moves. We look forward to helping you buy a home soon!