To begin the process of buying a home, a potential home buyer must first fill out a disclosure form and an application. For first time home buyers, this process can be a bit intimidating. Once a lender has requested all of the verification forms, the potential home buyer may find the process somewhat overwhelming. However, if this is the second or third home the potential home buyer is purchasing, they should be familiar with the process. Depending on the loan, the lender will require a vast amount of paperwork from the potential homebuyer such as:
The reason a lender will want to collect these documents from the potential home buyer is because the lender will want to assess the potential home buyer’s current financial state to determine how much the potential home buyer will be able to afford. Horizon Lending Services, LLC works with the potential home buyer and the lender to make this process as smooth and exciting as possible.
Once the potential home buyer application for a loan is approved, a mortgage underwriter will then go over the loan in detail and send it in for final inspection. Depending on the type of loan the home buyer is applying for, the underwriter’s task is to carefully review the debt-to-income ratio of the potential home buyer. In doing this, the underwriter will be able to determine if the loan chosen is the right loan for the potential home buyer and if he or she can afford to repay the loan back.
For the most part, the guidelines and eligibility requirements will differ from lender to lender. All lenders as part of their job, is to review a potential home buyer’s financial information. The following are some examples of what kind of documentation will be needed.