Buying a home is an exciting time! To make the process more efficient and enjoyable make sure you’re prepared before you start looking. Getting the documentation you need to qualify and close your loan before you apply with a mortgage company will make your loan process more efficient. It also might end up saving you money. So take that important first step and gather the necessary documentation to ensure you’re ready to move forward with your purchase as a prepared homebuyer.
Below is a list of documents needed to buy a home in California. This is a general list to follow. Please know that your underwriter may request less or possibly more documentation depending on your specific financial situation.
Documents You Need To Buy A Home In California
With every purchase transaction in the mortgage industry a lender requests certain documents before they will approve and close your loan. Here is simple breakdown of the documents you need to buy a home in California.
If You Are An Employee That Receives a W-2:
- Your most recent W-2 you’ve received (possibly the most recent two).
- Paystubs that cover a months period of time. So if you are paid weekly that would be four weeks of paystubs, bi-weekly requires two paystubs and monthly would only require one paystub to be turned in.
If You Are Self-Employed/Receive a 1099:
- Your most recent tax return; personal and business with all scheduled (federal only). You may have to provide two years.
- A P&L statement for the current year; possibly one for the prior year as well (depends on when you file your returns).
If You Are Retired:
- If you receive Social Security income then proof of benefit and proof of receipt (a bank statement the money is deposited into).
- If you receive pension income you’ll need documents similar to SS income; proof of benefit and possibly proof of receipt.
- Interest, dividend and capital gains income: You’ll need two years of tax returns and proof that the current level of income will continue for at least three years.
- For Asset Depletion you’ll need two years of tax returns and proof it will continue for at least three years.
The Necessary Asset Documentation:
Buying a home means you need to have liquid assets (ie cash in the bank) for the down payment and closings costs. To prove that the money is your and not borrowed you’ll need to provide statements covering a two month period. The statements must be complete and all pages must be provided. The statements should be for the account(s) in which your funds to cover the downpayment and closing costs will come from.
When you buy a home you have to purchase homeowners insurance. It’s important you move quickly to get this set up and once you have the information for the agent/company you are working with be sure to send that over to the Loan Officer. The Loan Officer will need to contact the insurance agent/company to obtain the necessary documentation from them.
If You Own Additional Properties:
If you own rental properties please be prepared to provide the following:
- Mortgage statements for each property
- Insurance information for each property
- Lease agreements
Additional Items That May Be Requested:
- Legal Separation or Divorce: If you are legally separated or divorced you’ll need to provide your separation or final divorce documentation.
- Bankruptcy: If you’ve filled for Bankruptcy in the last seven years you may have to provide Bankruptcy documentation to the underwriter.
- Tax Lien: If you have a payment plan with the IRS set up you’ll have to show the the documentation from the IRS that explains the payment plan.
Staying On Top Of Current Mortgage Rates
Knowing where the market it is with respect to mortgage rates is one of the most important aspects of home buying. Make sure you stay up-to-date with current mortgage rates and ask your Loan Officer to share his/her advice on which way the market is moving.
A word of advice: when it comes to buying a home it’s important not to wait too long to lock in your rate/terms.
JB Mortgage Capital, Inc.
We offer industry-low mortgage rates, personal one-on-one service, and fast closings. From the beginning, we will clearly share with you the documents you need to buy a home in California.
If you are looking to purchase a home please be sure to contact us for a no-cost/no-obligation quote. We offer a wide variety of loan programs to meet your needs. We offer loan programs for first-time homebuyers all the way to the seasoned investor who owns multiple properties. You can contact Loan Officer Kevin O’Connor directly at 1-800-550-5538.