Prepare Your Finances Before Buying Your First Home

Thinking about buying your first house? To make the preapproval process seamless, gather these financial documents:

• Your credit report:

  Obtain a copy as early as possible and scour it for accuracy. If time permits, pull your credit report three months before you seek pre-approval so you have time to correct any issues or mistakes. Each major credit bureau must provide one free credit report annually to consumers requesting a copy. To obtain a report visit annualcreditreport.com. Usually, it works well to order one report every four months from a different credit bureau; but when you plan to buy a house, check all three at once. Save up your free reports in the year until you’re ready to start looking for a house. Your goal is to identify discrepancies between the reports as well as to monitor your credit standing.

• W-2 forms:

  Make copies from the past two years.

• Paystubs:

  Copy your two most recent ones.

• Financial account statements:

  Collect statements (including retirement accounts) from the past few months.

• Lines of credit:

  Provide copies of statements if you have opened any in the past six months because they might not show up on your credit report.

• Vehicles you own:

  Include make, model, and resale value.

• Credit card account information:

  Include numbers and types of cards, balances, and minimum payments.

• Auto loan account information:

  Include account numbers and statements.

• Other loan account information:

  Think student loans and personal loans.

• Gifts:

  If you’re fortunate enough to have any money for your down payment gifted to you, identify where it will come from and how much. Be prepared to document that it’s a gift and not a loan.

Once you have all your documents and personal financial information assembled, you’re ready to get preapproved. Stop in or apply online today.