Columbus Homes For Sale | Personal Finances

Getting Your Finances in Order

A crucial step in starting your search for a new home is having a clear idea of your financial situation. By getting a handle on

your income,

expenses and debts, you'll

have a much better idea of what you can afford and how much you'll need to borrow.

For lenders to verify this information, though, they're going to need to look at your financial records. It is also important to

remember that

you should include records

for each person who will be an owner of the house. So before you even visit the

bank, make sure you'll be able to

provide copies of these important documents:

Paycheck Stubs

Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but

also how

much you've been making for

the past two years. Steady employment is also more attractive to lenders, so if you've

been hopping from job

to job, be prepared to discuss the reasons why.

Bank Statements

In order to qualify you for a loan, most lenders will also ask you for copies of your bank statements. Ideally, they'd like to see a

steady

history of savings, or at the

very least, that you're not bouncing checks every month.

Tax Records

It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's

important to

note that lenders

generally consider your income as the amount you paid taxes on, not the gross income of the

business.

Dividends & Investments

Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.

Alimony/Child Support

If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your

gross income.

Just remember that

lenders will want to see a copy of your divorce/court settlement verifying the amount of the

payments.

Credit Report

Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of

your long-

term debts, as well as your

payment history. In general, they will require you to pay for the credit report

(approximately $50), but if you

have a recent copy, they may accept that instead.

Personal Finances

The Anders Team
614-527-0811

Real Estate Essentials for Home Buyers!

Your Credit

B ack to Search Your Answers

Home