3 Things You Need To Get Your Construction Or Home Loan
If you are getting ready to apply for a home or low down payment construction loan you should consider having all of the documentation ready that you need to get approved. There are so many things that you will need to gather to get approved, which is why it is important to start early. Here are some of the documents you will need to have before applying for the loan.
1. Credit Report
When you apply for a home loan the mortgage lender will pull your credit report. You won't be able to pull it for them, they will pull it from all 3 different credit agencies, but you will have to give your consent. This credit report will be important because it will show how much outstanding debt you have. This credit report will show what debts you currently have, and what debts you used to have. It will also show how good you were at paying them off, if you missed payments, and if you are reliable. At the end this report will give you a score. This score shows how dependable you are with your debt. Do you make your payments? Do you make them on time? And so much more. This credit report is very important and you can get a better credit report, but not carrying too much debt, carrying low balances on your credit cards, and making payments on time.
2. Income Tax Reports
Another important thing that you should have ready to give the mortgage lender is your tax information. You will have to show them your w-2 and paystubs, but taxes are the most reliable to way to see how much you really make. It will show them how much you pay each month in business expenses and how much you actually keep to use for things like house payments, utility payments and so much more. You will have to show taxes, usually 2 years worth, so make sure your taxes are up to date and accurate.
3. Insurance Information
Lastly, you will need to show that you will insure the property. If you have a loan on the property you will need to show that you can afford the payments to insure it, and that it will always have insurance. This way if something does happen to the property, you will be able to file a claim and the bank won't be without their money.
These are just a few things you should be prepared with.