It’s never too early to get started on your new home mortgage. Even if you think you have perfect credit, assets and income, it’s best to begin early to avoid any complications. It’s estimated that over 25% of all credit reports have one or more errors on them. These errors could result in higher rates, fees and even not qualifying for your loan.
To know where you stand and to avoid any unpleasant surprises, get pre-approved for financing. During the pre-approval process your lender will often require documentation, most commonly:
- Bank statements
- Statements from retirement funds
- W-2s
- Tax returns
- Paycheck stubs / receipts
It is especially important to have good documentation if you are self-employed or work on a commission basis. You can look here for a more complete list of documents that may be required to secure your loan.