What Paperwork Do I Need to Buy a House?

• Author: Aubrey Sipes
• Posted: 2024-11-11

Buying a house involves a lot of paperwork, both to get a mortgage and to complete the purchase. Getting all your documents ready beforehand can make the process quicker and less stressful. 

Here’s a rundown of what you'll generally need:
 

For Early Stages

 

1. Proof of Income: Recent tax returns, W-2 forms, and if you're self-employed, your business tax returns and profit-and-loss statements are crucial.
2. Proof of Employment: A letter from your employer verifying your job, or recent pay stubs if you're self-employed.
3. Credit Information: Bank statements, credit card statements, and any loan statements (like car or student loans).
4. Proof of Assets: Statements from retirement accounts, other brokerage accounts, and titles for major assets like current homes or cars.
5. Additional Income: Documentation of any extra earnings such as alimony or bonuses.
6. Identification: A government-issued photo ID.

 

Getting Pre-approved for a Mortgage

For mortgage preapproval, which helps you understand how much you can borrow, be ready to provide:
 

• All Above Mentioned Proofs: Including your identity, income, employment, and asset documents.
• Credit Report: Check your credit beforehand as you'll need a decent credit score to get better mortgage rates.
• Debt Information: Recent statements from any loans or credit lines.

Must Read: Exploring Financial Assistance Options for Housing Costs for Older Adults
 

Offer Process

Proof of Earnest Money: Shows you’re serious about buying; usually about 1% of the home’s price which should be readied before you sign the buying agreement.
 

Closing the Deal

Insurance and Ownership Proofs: Homeowners' insurance proof, closing disclosure, purchase contract, and, for new homes, the certificate of occupancy.
 

Post-closing

Ownership Documents: Ensure all documents such as the home title, deed, mortgage or trust deed, title insurance, and related legal papers are correctly filed and secured.
 

Final Tip

Working with an experienced real estate agent can be very helpful. They can manage much of the paperwork and guide you through the process, making sure you are prepared at every step.

This streamlined guide should help you feel more prepared and less overwhelmed by the paperwork needed to buy your home.
 

Buy a Home with Section 8 Vouchers

Section 8, also known as the Housing Choice Voucher Program, helps low-income families, the elderly, and the disabled afford housing. This program isn't just for renting—it can also help eligible participants buy homes.

However, buying a home with Section 8 vouchers can be a complex process, so work closely with your PHA and a real estate agent experienced in Section 8 purchases to help navigate the requirements and find a suitable home.

Dig Deeper: What is Federal Rental Assistance?

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