Shopping for a new home is probably one of the most exciting and most stressful times in your life. Deciding on one story versus two, new versus pre-owned, location, schools…so many decisions. Before you spend hours on the web searches and open houses, it is important to get pre-qualified for a loan. There are 8 essential documents that you will need to pre-qualify:
Previous 2 years W-2s
Previous 2 years tax returns
Previous 2 months paystubs
Evidence of other income (Child support, etc)
2-3 months of bank statements
Home addresses for the last 2 years
List of consumer debts
Social Security card of each purchaser
Other items to consider is your credit score. Most lenders require a FICO score of 620 or above to approve a conventional loan. To find out your credit score, visit CreditKarma.com. It is free and will provide scores from the three main reporting credit agencies, TransUnion, Experian, Equifax.
Your lender can help you decide what type of loan is best for you, as well as what price range best fits your budget.
Now you are ready to shop for your dream home! Happy hunting!