Buying a house requires a lot of paperwork. Whether you're getting a mortgage or not, there are several documents you'll need throughout the home buying process. Being prepared with the right documents can make the process faster and less stressful.
Initial Documents Required
- Tax Returns: Have your recent tax returns ready.
- W-2 Forms or Business Tax Returns: These show your income if you’re employed or self-employed.
- Proof of Income:
- Pay stubs
- Profit and loss statements (if self-employed)
- Bank Statements: To show your savings and spending habits.
- Investment Statements: This includes retirement and brokerage accounts.
- Debt Records: Statements of student loans, car loans, and credit cards.
- Asset Titles: Documents for properties or vehicles you own.
- Residency History: A list of places you've lived in the past few years.
- Additional Income Proof: Any other earnings like alimony or bonuses.
- Gift Letter: If someone is giving you money towards the house.
- Photo ID: To prove your identity.
Starting the Buying Process
- Credit Report: Check your credit score as it influences the mortgage terms.
- Updated Tax Filings: Make sure your taxes are filed and up to date.
Preapproval Documents
For mortgage preapproval, you'll need to provide:
- Proof of Identity: Like a driver's license or passport.
- Proof of Employment: Recent pay stubs and a list of previous employers.
- Proof of Income: Recent bank statements and records if you own a business.
- Proof of Other Assets: Like investments or other property.
- Debt Information: Recent statements for any loans or credit cards.
- Rental History: If applicable, showing on-time payments.
Must Read: Exploring Financial Assistance Options for Housing Costs for Older Adults
Documents for Making an Offer
Proof of Earnest Money: Shows you’re serious about buying. This deposit is usually about 1% of the home's price.
Closing Documents
- Homeowner’s Insurance
- Closing Disclosure
- Loan Application
- Purchase Contract
- Certificate of Occupancy (for new construction)
After Closing
Ensure you have:
- Home Title
- Deed of Trust or Mortgage
- Note
- Deed
- Title Insurance Policy
- Affidavit of Title
- Escrow Statement
- Transfer Tax Declaration
Tip: Work With a Real Estate Agent
A knowledgeable real estate agent can make sure you have all the necessary documents at each step. They handle the paperwork and guide you through the buying process, making it smoother for you.
This list may seem long, but being organized with these documents can help you navigate the complexities of buying a home more confidently.
Buy a Home with Section 8 Vouchers
Section 8, also known as the Housing Choice Voucher Program, helps low-income families, the elderly, and the disabled afford housing. This program isn't just for renting—it can also help eligible participants buy homes.
However, buying a home with Section 8 vouchers can be a complex process, so work closely with your PHA and a real estate agent experienced in Section 8 purchases to help navigate the requirements and find a suitable home.
-
Related Read: Mortgage Insurance: Is it worth it?
