Overcoming the organization hurdle
Buying a house requires a fair amount of organization, and if you’re completely disorganized, you’ll have a much tougher time. If you are already organized, then you are just one step ahead of the game. But for everyone else; we’re here to help you get there.
Now if you’re ready to buy, getting the lender lined up is next. They will be looking at three things:
- What you make
- What you have saved
- What your credit report looks like
Each one of these items requires some paperwork. We recommend having a designated “buying a house” folder to collect all the paperwork in.
Let’s start with your income — this requires your pay stubs. The more you have, the easier this process will be. Have at least two on hand, but we recommend a few months worth. Make copies of all your stubs so you will be ready for whichever the lender asks for, the originals or the copies. Beyond your pay stubs, your other types of income, such as alimony or child support, needs documentation, also. If you are divorced, you’ll want to have a copy of your divorce agreement, particularly the page where it spells out alimony and child support. Most lenders will also want are your two most recent tax returns. If you don’t already have copies, contact the IRS for these.
Next up… Your savings. To prepare for this, get all your monthly or quarterly statements ready. This would include your checking account, savings account, 401k, IRA, life insurance- everything. The lender wants to see your whole financial picture, so make sure you don’t miss anything. Gather up all of the statements, and you guessed it- copy them and put them in that folder of yours.
The third and final step- your credit! Finally, no paperwork needed! The credit reporting agencies will give your lender this information. But, while you didn’t need to do the paperwork yourself, you still need to make sure that your credit report is correct. Take a look at it carefully and make sure it is 100% right, and if not call the credit bureaus to make it right.
Congratulations! You’re organized! And, you’ve just cleared a major hurdle on the way to buying a house!
