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Let's Talk About Paperwork: What You Need To Buy A Home

Unfortunately, buying a home isn't as simple as whipping out your credit card. Here's the paperwork you'll see when buying a home.

From securing mortgage pre-approval through your lender to closing on your new home, the process of purchasing a home involves plenty of paperwork. You can make your life much easier by being prepared. Here are some of the key documents that you may need to provide or review throughout the process of purchasing your next home.

Proof of Income
In order to apply for loan pre-approval and determine how much you may be able to borrow, your lender may request a variety of documents to prove your income. These documents may include pay stubs, tax returns, bank statements, and retirement account statements.
Proof of Employment
Your lender wants to know where your down payment will come from and verify that you will be able to pay your mortgage, so they will also request proof of employment. Documents required may include pay stubs, 1099s, and W-2s.
Debt Information
Your lender will also want to be aware of any debts that you already owe, to ensure that you can pay those debts while also covering your mortgage. That could include information on student loans, car loans, and any other debts that you may be carrying.
Loan Estimate
While it's not an indication of your loan status, the loan estimate that your lender is required to send by law provides a broad outline of the terms of your potential loan. It's helpful to have this document available when you're comparing loan terms from multiple lenders.
Loan Pre-Approval Letter
Once you've provided your lender with all of the necessary documents, hopefully the next step will be receiving your pre-approval letter. While it doesn't mean that you've definitely secured the loan, this important piece of paperwork gives you a better idea of your budget.
Purchase Agreement
Once you have found a home you love and negotiated with the seller, the purchase agreement outlines the terms of the agreement. You won't need to create this document, but you'll need to be familiar with it in order to know your responsibilities before closing.
Seller's Disclosure
In some states, the seller is required to disclose any known issues with the home. The seller's disclosure, if required, provides important details on the home's history.
Inspection Report
The home inspection report provides detailed information on the condition of the home. If the inspection reveals problems, you might decide to negotiate with the seller for repairs or for a credit at closing that reflects issues with the condition of the home.
Home Appraisal
The home appraisal, which will typically be arranged by your lender, details the value of the home in the current real estate market. If the appraisal comes in significantly below your offer, you may have to pay the difference in cash or try to negotiate a lower price for the home.
Proof of Homeowner's Insurance
Your lender won't commit to a loan without proof that you have home insurance, so you'll want to have that ready to go in order to secure your loan.
Government ID
Sometimes, the simplest things are also the easiest to forget. You will need a government-issued ID like a driver's license or passport on closing day. Before closing, check that your ID isn't expired and that all of the information is up to date.

The exact documents you will need depend on your location and other factors. If you have any questions about exactly which documents will be needed in your market, your real estate agent should be a great source of advice.

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Let's Talk About Paperwork: What You Need To Buy A Home

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