It’s the end of 2021 and the Real Estate market continues to sizzle, even at a time of the year when sales typically cool down. Homes are staying on the market for an average of only 22 days, with 33% of pending sales coming under contract within a week¹. If you’re ready to buy real estate, your first step is to work through a mortgage loan documents checklist to gather the financial documents you’ll need to get pre-approved for a home loan.
Because of this compressed housing market, prospective buyers should have their documentation ready before visiting a mortgage lender such as Travis Credit Union or another financial institution. This will help speed up the pre-approval process so you can move even more quickly and make an offer when you find the home you love.
Types of Documents Needed
The exact types of documentation needed for a mortgage may differ from lender to lender. Generally, there are five main categories: personal information, income verification, credit history, assets and liabilities and property information. Lenders use all of this data to determine your creditworthiness for a mortgage.
Here’s the checklist, by category and documents:
- Personal information: Government identification, Social Security Number, previous addresses for all applicants
- Income verification: Paystubs, W‑2, 1099 tax form, proof of income and income tax returns
- Credit history: Established credit limits and usage history, and any blemishes on credit reports
- Assets/liabilities: Credit union/bank statements from the past few months, investment and retirement account statements, documentation for any gift funds and any current debts
- Property information: The location and type of property you intend to purchase
What to Do Next
With documents in hand, meet with a lender such as Travis Credit Union to discuss your real estate purchase goals as well as to get the pre-approval process started. After reviewing your documentation, your lender will provide you with a loan amount and interest rates available to you based on your information.
Next, use that knowledge to start house-hunting with confidence and to act swiftly when you want to make an offer on a home.
If your lender doesn’t offer what you expected in terms of loan amount or interest rate, ask them what steps can be taken to positively change it. Some actions may include improving your credit sore, searching for homes in other areas and re-defining the types of home you want to purchase.
Travis Has Resources to Help
While buying a home can be one of the best ways to invest in real estate, it is a complicated process. To start the process with success in mind, learn as much as you can beforehand. Check out our Frequently Asked Questions about mortgages to get answers to commonly asked questions.
Travis also has various free webinars that can help prepare you for buying a home: Home Buying 101, Organizing Your Financial Records and Understanding the Importance of Your Credit Score.
Indeed, one of the key factors in buying a home is your credit score. Learn how your credit score impacts what you pay for a mortgage. You can boost your score instantly through our partnership with Experian Boost™.
Ready? Let’s Get Started!
Ready to jump into the home-buying process? Start your application online right now. Our knowledgeable and friendly TCU mortgage loan consultants are eager to meet with you in person to answer any questions you may have when you apply. Fill out our Real Estate contact form and someone will get back with you.
You may also call us at (707) 469-2000 or (888) 698-0000. Visit traviscu.org to learn how the credit union can help you achieve your financial goals.