• Real Estate Expertise by the Shore

2000 Bellmore Street Ocean Township, NJ 07755

732-517-0102

523 Main Street Bradley Beach, NJ 07720

(732) 455-5252

Compare Listings

Getting Your Finances in Order

Getting Your Finances in Order

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. Patrick Parker Realty Experts offer turn-key services to buyer walking them through each step of the home-buying process. We will guide you through this process to ensure your transaction is as smooth and stress-free as possible. Contact us today for a free consultation.

img

admin

    Related posts

    2 Myths Holding Back Home Buyers

    2 Myths Holding Back Home Buyers Buying a home is a huge commitment and one which should be...

    Continue reading
    by Chuck

    3 Benefits to Buying Your Dream Home This Year

    3 Benefits to Buying Your Dream Home This Year Finding the perfect time to buy a home is a...

    Continue reading
    by Chuck

    The Home Selling Process

    Are you planning to sell your home?  Regardless if this is your first time as a home seller, or...

    Continue reading
    by Chuck