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Key documents when buying a house

Key documents when buying a house

Key documents

From the start of the home buying process all the way to the end, there’s a certain amount of paperwork involved. Documents for your mortgage application, the title company, and your agreement with the seller are the most common ones you’ll need to prepare.

See our list of key documents below:

Tax returns

When you take out a loan for your home, your lender will request for certain financial documents that show your assets, debts, spending history, and more. These documents will help the lender assess your financial readiness and determine the loan terms and amount to offer you.

One document that a lender looks at are your tax returns. This document verifies your income and helps determine your debt-to-income ratio, which is your monthly debt payments compared to your monthly income. Lenders require at least two years of tax returns to show consistent income.

Proof of income, bank statements, and assets

Mortgage lenders want to verify your income and your assets to ensure that you can make the monthly mortgage payments. Full-time or part-time employees must submit their W-2 form, which reports their annual compensation and withheld taxes. Independent contractors or self-employed individuals, on the other hand, can show proof of income through the 1099 form.

Credit report

A credit report is a breakdown of your credit accounts and how you handled them. It details your credit activity, your track record of payments, and your current credit situation. There are three credit bureaus that provide credit reports: Experian, Equifax, and TransUnion. Lenders and other entities can request your credit report to assess your creditworthiness. You can also get a free copy from any of these three credit reporting agencies once a year, and use it to see how you may improve your credit score.

Mortgage pre-approval letter

Know how much home you can afford with a mortgage pre-approval letter. To issue a pre-approval letter, your lender takes the information on the documents mentioned previously (your tax returns, proof of income, and credit report) into consideration and gives an estimate of the maximum loan amount you can expect. You can then use this in setting your budget.

A pre-approval letter also gives you an advantage over other buyers. It lets the seller know that you’re serious about buying the home, making them more likely to consider your offer.

Real estate purchase agreement

The most important document in the home buying process is the real estate purchase agreement. This binding contract between the buyer and the seller outlines every aspect of the home sale. Typically prepared by the buyer’s agent, the purchase agreement includes all important details of the sale, including the agreed-upon price, contingencies, conditions, closing dates, and financing information.

Let an experienced real estate agent like me, Anthony Romeo, help you manage the documentsneeded to buy a house. As a member of the Las Vegas real estate industry since 2001, I know every aspect of the home buying process like the back of my hand. I have a spotless track record of setting clientsup for home buying success.

Work with me and the Romeo Luxury team today! Reach out to us at 702.353.6759 or send an email to Anthony(at)RomeoLuxury(dotted)com.

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