With all the work that goes into finding the right home, it can be easy to forget about all of the little things required for the transaction to close successfully. While the paperwork involved in purchasing may seem like a long way off, here’s a quick review of some of the documents you’ll need when the time comes to seal the deal.
Your Credit Report
It’s important to review your credit before putting an offer in, so ensure that you request your credit report in advance and review it for any errors that may be present. If there are any discrepancies negatively impacting your credit score, you’ll be able to have them corrected before they can cause an issue with your real estate purchase.
Pay Stub Proof
In order to ascertain your ability to pay off your monthly mortgage, you will need to provide at least two pay stubs from your current employer. You won’t want to give away your originals, but a photocopy of your last two paychecks usually serves as adequate verification.
Recent Bank Statements
The number of bank statements required to prove your credit history may change depending on the lender you are dealing with. Either way, you will likely need photocopies from the last two to three months. This will be a means of proving your financial health as well as your ability to pay your monthly mortgage in the event of interest rate hikes or other fiscal setbacks.
Tax Return Copies
Your federal tax returns will provide further proof of your employment and financial standing, so the last two years of these – complete with your signature – will need to be submitted. Keep in mind that any schedules you have filled out to complete your yearly returns should also be included.
Additional Asset Statements
In addition to recent bank statements, if you have any stocks and bonds, mutual funds, RRSPs or other investments, you should also provide statements of proof for these. While these accounts will only require your most recent statements, they will be beneficial in providing a more comprehensive picture of your finances.
There are many aspects of purchasing a home that can be time consuming, but having the documents you need beforehand can prevent a lot of stress.