You’ve dreamed, saved and planned.  Now you’re ready to get serious about the process of obtaining a mortgage for a new home.

You’re next step is to head to the bank to start the pre-qualification process.  Well in case it’s been a while since you’ve gone through this process or if you are starting it for the very first time, here is a list of documents you’ll need:

One Month of Pay Stubs with Year-to-Date Earnings Reflected
In order to qualify for a loan, any bank will need to know that you have the funds available to pay the mortgage.  One month of verified income that also reflects year-to-date earnings will do.  You will need this for both parties who will be listed on the loan. If you have direct deposit and receive your paystubs online, you can go to the website and print them.    

Two Years of Tax Returns and W-2s
In addition to the pay stubs, your tax returns and W-2’s will help to verify your income.  When people think to just bring their tax returns, they oftentimes will just bring the first two pages.  However, the full tax return is needed because it tells the “big picture” of someone’s financial history.

Other Income
If there are other sources of income to be used in qualifying for the mortgage loan, you will need to provide acceptable documentation to demonstrate the amount of income and its future continuity.

Copies of Bank Statements
Your lender will also want to review your bank history.  Three months of bank statements along with the other documents listed provide a decent overview of your fiscal responsibility.

Some additional documents might include…

  • A list of other current debts
  • List of all your owned assets
  • Canceled rent checks for the past three months

Providing this information will not only take you a step forward in the direction of home ownership, it is also a great starting point because together you and your potential lender will be able to determine the best down payment option for you and ensure you will be able to afford the house you are choosing.

At the end of the reviewing process, you will receive a letter a letter that states the details regarding the mortgage you would qualify for.  However, it is important to note that this prequalification letter is not an actual approval of the loan.

Feeling a little bit overwhelmed?

We are here to help.  The team at Wallkill Valley Federal Savings and Loan, we would be happy to sit down with you and walk you through the entire loan process from the documents needed to the pre-qualification letter to the loan application all the way through to the closing on your new home. We want to establish a relationship with our customers and help them achieve their financial goals so if you are buying a home, please give Michael Cappillino a call at 845-895-2051 x254 or Domenic Baiocco at 845-895-2051 x238.

We are extending until August 31, 2017 a Closing Cost Credit of $750.00 on all primary occupancy residential mortgage loan applications!  If you would like more information, head here.