But First, Paperwork: 18 Key Documents You’ll Need to Buy a House
Learn the key documents needed to buy a house, from proof of income to loan pre-approval. With this, you can make the experience less stressful.
It takes a staggering amount of paperwork to buy a house. From copies of tax forms to income verification, your head might be swimming keeping track of it all.
Thankfully, your agent, mortgage lender, and title company will collect and monitor much of the paperwork.
Minnesota-based agent Becky O’Brien, who works with 67% more single-family homes than other agents in Maple Grove, explains that while you might have to sign some papers, “The good news is that buyers don’t need to handle very many documents, especially after they sign the purchase agreement and their house is under contract because their agent will handle most of it.”
But you might still have to manage documents from your lender, print out a pay stub, or make copies of your driver’s license. While you don’t need to worry about preparing many of the forms in the stack, here are 18 key documents needed to buy a house that you should be aware of and pay close attention to.
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1. Proof of income and assets
When you apply for a mortgage pre-approval with a lender, you’ll need to show them proof of income. Depending on the lender, they could request these documents:
- Pay stubs or other proof of employment
- Bank statements
- Retirement account statements
- Tax returns
- Gift letters
- Form 4506-T (this form gives your lender permission to pull a copy of your taxes from the IRS)
All of these documents prove that your income is what you’ve claimed it is, and will also show the sources of your down payment.
2. Proof of employment
How do you plan on paying your mortgage? And how much can you pay each month? A lender wants to know that you can consistently make your payments, and will base your mortgage pre-approval amount in part on your monthly income.
Lenders could request pay stubs, W-2s, or 1099s, and the lender may also call your employer to verify employment. Expect them to re-verify employment a few days before the mortgage closing, too.
3. Information on debts
Lenders also want to know what debt you already carry. This helps them determine if you can make payments on existing debt and pay a mortgage.
They could request divorce decrees with evidence of spousal or child support that you owe, information on student loans or car loans, or bankruptcy paperwork.
4. Credit report
A credit report contains information on your debts, payment history, and collections. Credit bureaus use this information to generate a credit score — the higher, the better. Lenders pull your credit report and score to assess your ability to repay a loan.
You won’t see this document yourself unless you request a copy.
It’s better to do the homework upfront to find out what your closing costs are going to be.
Matt Laricy
Real Estate Agent
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Matt Laricy
Real Estate Agent at Americorp Real Estate5.0
Currently accepting new clients
- Years of Experience
22- Transactions
5824- Average Price Point
$468k- Condominiums
3780
