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BE PREPARED TO PROVIDE YOUR INFORMATION AND BE CONFIDENT GOING TO SEE YOUR BANKER

Updated: Oct 26, 2022

I don't know about you, but there are several occasions that make me anxious. As an adult, going to talk to a banker about a home mortgage used to get me a little anxious. I don't have any formal training in finances, and I am always needing to read up on what is involved. We have moved several times over the years, so now I know what banks will ask for when applying for a loan, which makes me calmer. Here is a list of most of the items a bank will require.

Prepare tax returns

You will need to prepare a copy of one to two years of your tax returns. This allows banks to verify your income is what you claimed.

Prepare Pay stubs

You will also need to prepare a copy of your pay stubs or W-2s for one or two months to help them see what your current earnings are. Never give them the originals. You need your copy.

Provide bank statements

In addition, you show them you are confident that you have the money needed to purchase a home with a copy of your bank statements. Since they are loaning you the money, this will assure them you have had the downpayment in the bank for a while and that you have enough money set aside in case of an emergency. No lender wants to be at the bottom of the totem pole during a challenging time. Each bank varies on how much they are comfortable with you having in the bank. Just because one bank may turn you down does not mean you should stop. Looking around is important. You may find one bank is a much better match for you and may have better terms. Checking out banks is smart.

Provide credit history

Next, you show them you have prepared for this day by handling your credit well in the past, which is why you have to give them permission to pull your credit history. It's all about paying your debts on time. It is always best to let them know up front if there has been a problem, why and how it was corrected.

Proving gift money from parents

If you are being gifted money from parents to help you get started in a new home, a written letter is required to prove it is a gift and not another loan you will also be repaying.

Provide rental history

Furthermore, if you have previously been renting, then you need to be prepared to give them your rental history. This could be a year's worth of canceled checks to the landlord, or documentation from your landlord that you paid on time.

Provide driver's license

Lastly, be prepared with a copy of a photo id. A driver's license may be requested to prove you are in fact who you claim to be. We all know that identity theft has increased immensely. I have dealt with it a variety of times already myself. Ugh!!

As you can see from this list, there is a lot of information you need to gather and organize. There were times in the past that this was overwhelming for me, but after getting my information organized, filed and recorded, I am prepared because I am confident that I know where it is located. It still takes more time than I wish, but I know where our important family information is located and I can find it quickly and easily.

If you are interested in documenting and organizing your family documents so you are prepared ahead of time, check out the catalogs I have available to help you out. They are easy to fill in, easy to organize, and you can access them from your phone or print them out to keep together in a binder. Being prepared so you can easily find that important information delivers confidence and respect. I show you how to catalog and file your information with Pre-formatted Documents in my classes

Some of my catalogs include the following

  • Contacts for Banking/Mortgage

  • Contacts for Insurance/Auto,Home,Pet,Recreation equipment

  • Contacts for Medical Care

  • Out of Town Info

Check out these and other topics here to see what fits your current needs

If you know you would benefit from a class to help keep you motivated and encouraged with others working to the same goal then sign up for a class.

Classes include zoom calls with work parties to have time set aside to complete the catalog details and answer questions.

Have a wonderful day!

Blessings Friends

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