Next we will ask the home buyer about their past two years residency. For this, the documentation required is either a copy of a leaser if they are renting, a copy of canceled checks if paying a relative or a mortgage history if the home buyer is living in a home that they are planning on selling or renting, which also may require a copy of a lease on the property with at least one payment. If the home buyer is selling their current home, the listing and eventually the closing statement will be required.
Most often home buyers are getting pre-approved for their financing:
Mortgage consultants help gather all of the information necessary to arrange for a credit approval, called a preapproval. This puts the buyer in a much better negotiating position when they find a home to their liking. In a competitive market, there are often multiple offers on properties. Sellers are looking for the strongest offer to accept, and would rather not have to wait for the buyer to arrange financing.
Documents to bring to a loan application when purchasing a home:
The difference between a pre-approval and a loan application is that there is no specific property when a preapproval is completed, and there is a property when a loan application is completed. So if you’ve already found a specific property you want to buy, the first thing to document is the address of the property. For this we need a copy of the contract, with all the riders. To document the identity of the home buyer, we need a valid driver’s license or other valid government photo identification.