When making the decision to purchase a home is a big one. Especially if it is your first time In order to meet the goal of homeownership here in Hawaii you may need to borrow money through a bank. In order to borrow funds you need to qualify for a loan. When considering your options for finaing a purchase it is recommended that you prepare for it.
Take some time and gather the important documents that you will be needing to provide to the lender.
Lenders to require substantial documentat ion in order to approve you as a qualified borrower. Here is a list of documentation the lender will request form you in order to proxess a loan.
Income and Assests
Last 60 days of Paystubs.
Two years records of W-2’s
Three months of Bank Statements from all bank accounts, mutual funds, investment accounts.
Estimated value of personal property
If you make large deposits the lender will ask you to see the source of the deposit.
If the deposit is a gift, the lender will ask you to see a gift letter to accompany.
If you own 25% or more of a business you will be asked to provide corporate or partner ship tax returns.
If Self employed:
Tax returns for the last three years
Year to date profit and loss prepared by an accountant.
If you own Rental Property:
Tax returns for the last two years and current rental statements.
Pension Award Letter
If you receive Social Security
Social Security Award Letter
If you count child support as income:
Copy of divorce statements and a copy of twelve months cancelled child supoort checks.
List of all Debts:
Names and addresses, account numbers, balances and monthly payemts on all current loans.
Explanation of credit reports anomalies, in cluding: Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgements and/ or liens
Bankruptcy filed within last seven years. You will need to being a copy of your bankruptcy papers.
Copy of DD form 214, Report of Separation.
Other important items that you are going to need:
Photo ID and proof of Social Security number.
Residence addresses for the past two years.
If applicable, a copy of your divorce decree,
If you are not a citezen, a copy of the front and back of your green card.
Now that you are prepared and have all of the necessary items to get approved for a loan, take your information to a reputable le der. The lender will key in your information in a computer and get you and online approval letter. Once you receive your approval letter you know what you can afford and are NOW ready to go shopping.
If you need to be referred to a few lenders on Hawaii island please contact us today so that we can give you a list of lenders our Koa Realty agents know and trust.