Unless you’re paying for your home in cash, you will need to authenticate your income and taxes to qualify for a mortgage in Tacoma, WA. Here are all the documents needed for mortgage applications, so that you’re fully prepared when you meet with your lender.
Documents Needed For a Mortgage In Tacoma, WA
Previous Two Pay Stubs
This is to verify your income so that the lender can accurately assess your qualification for a mortgage in Tacoma, WA. Some lenders may need to see more than two, so just have them ready in case. Pay stubs also verify that you are keeping a consistent income.
You will need to provide your most recent tax return to qualify for a mortgage in Tacoma, WA. The loan officer will look at your tax return to see if they find anything fraudulent.
Previous Two Years’ W2 Forms
If you work for an employers, you will need one or two years’ worth of W2’s. These forms provide proof to your lender that you have employment and income.
List of Debts
Once your lender knows how much you earn that want to know how much you owe. This list should include credit card balances, car loans, personal loans, child support, student loans, and any other mortgages you might have. The lender needs this information so they can determine your debt to income ratio. This is the percentage of monthly income spent on your debt payments.
Prospective buyers who are self-employed and own more than 20% of a company may need to provide more information provide more information to help verify source of income. These documents may include but aren’t limited to federal tax returns for the past two years, as well as profit and loss statements.
Statement of Assets
Your lender will want to know if you have enough cash on hand to cover closing costs and your first few mortgage payments. So be ready to submit savings accounts, retirement accounts, investment accounts stocks, bonds, and certificates of deposits. The more income you have the more a lender is willing to lender, so it’s in your best interest to list all of your assets up front.
If you are received a gift fund to help meet your down payments, your lender will require the benefactor to sign a gift letter. This documents explains the amount and that the gift does not need to be paid back.
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