I get so many questions about how to buy a house and a lot of times home buyers are not sure where to even begin and the first question I typically ask a client looking to buy a home is, “How much can you spend?” Typically there are three answers: 

“I’m not sure, do you have any idea?”

“I talked to a lender and they said this amount.”

“I have this much cash to spend.”

In all three scenarios, I can help! If you have a lender or cash lets get started (my phone number is at the bottom) but if you have no idea where to begin the rest of this article will be a very good first step.

When you are applying for a loan you will need quite a few financial documents so the lender can make a strong approval on how much house you can buy. This means that understanding and having everything in order is essential.

These are the 7 things you need for financing:

  1. Last 2 years Federal Tax Returns and W-2’s (all schedules)
  2. Last 2 years Business Tax Returns an K1’s (if self -employed)
  3. Last 2 months Bank Statements (all pages)
  4. Paystubs covering the most recent 30 days    
  5. Any other Income Documentation (SSI, Retirement, etc.)
  6. Copy of Driver’s License or Passport    
  7. Realtor Contact Info

Every lender you come in contact with will ask for all of these in order to make a fair evaluation on what you can afford, so it would probably be a good idea to have these anyways. Having all of these documents also helps the deal when we finally get into escrow on the home you choose since there will be no reason for it to fall out because of financing. That’s a huge deal!

If you still have questions and need a little guidance, do not hesitate to reach out and let me know! My goal is to make sure that all of my clients understand every part of the process from start to finish.