Getting pre-approved for your mortgage is vital, so make sure you have the right paperwork.

Buying your first home is an experience you will never forget. You are finally getting a home to call your own, to customize the way you want and to start and raise a family. The only thing standing between you and that dream is getting the financing squared away so you can purchase your home.

Getting pre-approved for a mortgage is an important first step for any first-time homebuyer. But what exactly should you bring? You’ll definitely want to bring these items:

1. Credit/Income History. Lenders look at how consistent you have been with payments on past rentals, credit cards, loans and other financial obligations. Come prepared with two years personal tax returns and your two most recent pay stubs or verification of how your income is derived.
2. References. Home owners will need to give the name of the current lender. Renters should be prepared to give the name and contact information for your landlord. Lenders will reach out to these individuals to check on your ability to make consistent payments.
3. Tax Documents. Self-employed individuals will need to submit tax documents for any business they own that has generated income for the last two years. They should also provide a profit and loss statement, as well as a current balance sheet to show the current status of the business.
4. Other Assets. If you hold any stocks, bonds, investments or retirement accounts, you need to provide the most recent statements. These assets are considered to be part of your personal wealth and are taken into account for your pre-approval.
5. Debt-to-Income Ratio. Your debt-to-income ratio should be low when you are trying to obtain a mortgage pre-approval. To figure out your ratio, add up your monthly debt payments and divide them by your monthly gross income. The lower your debt-to-income ratio, the better you look in the eyes of a lender.
6. Down Payment. Having the cash necessary for a down payment shows that you have worked to save up money and are probably making enough decisions to be consistent with repayment. Making a higher down payment also means you won’t need to borrow as much, which is always a good thing. While Timberwood Bank does offer no down payment options, it is still important for you to have reserves for closing costs and unexpected items that may occur with a home purchase.

You should also get in touch with our mortgage lender to get a complete list of items you’ll need. This will help the process go much smoother.

If you are still searching for a mortgage lender to work with, Timberwood Bank’s home lending staff would be more than happy to help. Simply call 608-372-2265 to get started.

Timberwood Bank, Member FDIC and Equal Housing Lender.