What Documents Do I Need to Get a Mortgage in Greensboro?

There’s no denying that the home buying process is time-consuming and stressful. Finding a lender, realtor, and property is daunting even in the best of circumstances. One of the best ways to eliminate stress and confusion when you’re shopping for a house is to work with experts with years of experience in their field. Competent real estate professionals can guide you and answer whatever questions arise. If you’re shopping for a mortgage in Greensboro, one of the first things you need to do is gather documents for your application and the underwriting process. Here are the documents Mortgages by Jill recommends getting in order when you’re ready to buy a home.

Credit history

Your credit report tells the complete story of your borrowing history, repayment, and current debt load. Along with your credit score, your credit history impacts the terms of the Greensboro mortgage a lender will offer you. The lower your credit score, the higher your interest rate.

Even if negative items are on your credit report, you can write lenders a letter to explain previous foreclosures or evictions. Ultimately all the documents in this list are how lenders determine if you’ll be able to repay the mortgage.

Proof of income

Greensboro mortgage lenders want to see not only your earning history but your current income. They usually ask for pay stubs from the past couple of months. If your company uses electronic payroll, this will be easy. However, if you receive paper checks, start filing your pay stubs in preparation for your house hunt.

If you’re someone with non-traditional income, you’ll still be required to show documentation to prove your income. Lenders may ask for direct deposit slips, 1099 forms, or other proof.

Tax returns

Tax returns give a snapshot of your financials over several years. Lenders want to ensure yearly earnings don’t fluctuate and match your reported income. You have to give explicit permission to the IRS for lenders to request your tax returns.

By filling out a Form 4506-T, lenders can get access to your last year’s return. In general, to get a mortgage, you’ll need to show two years of consistent earnings that match the figure on your application.

Statement of assets and bank statements

When you’re getting ready to apply for a mortgage, consider that lenders will be closely examining your earning and spending habits. They’ll ask for proof of insurance, including life insurance and statements for your investment accounts.

Greensboro mortgage lenders will look to see that you’ve had your down payment in your account for several months. They’ll also want to know that you have several months of mortgage payments and monthly expenses saved as well.

Renting history

If you’re a first-time homeowner, you’ll need to show lenders that you’re responsible and make monthly housing payments on time. You can do this by showing your rent payment history for the past year or asking your landlord to write a letter attesting to your on-time payments.

Your rent history is as important as your credit history. In the years leading up to purchasing a home, make sure to pay on time to build up a record of documentation you can show to mortgage lenders.

Jill Burgess works with future homeowners to get them mortgages in Greensboro and North Carolina.

Mortgages by Jill provides professional, personal, and passionate service to first-time and existing homeowners in the Triad of North Carolina. Jill works with individuals who have excellent credit profiles but don’t necessarily meet post-housing crisis underwriting criteria. The mission of Mortgages by Jill is to bring common sense back to mortgage lending.

Buying a home can feel overwhelming, but working with an experienced, knowledgeable loan officer can give you clarity and insight into the entire process. From collecting the necessary documents to finding the right lender, Mortgages by Jill helps homeowners get Greensboro mortgages.