When preparing to purchase a home, it's important to first determine how much you can afford based on your financial situation. Completing a prequalification is an excellent way to gain a general understanding of your homebuying power. This process provides a preliminary assessment of your finances using the information you share with a lender.

After submitting your prequalification and deciding to move forward with your loan application, your Loan Officer will provide a Loan Estimate and a checklist of documents needed to continue your application. To ensure a smooth process, we've put together a list of essential documents you'll want to keep handy. 

Personal Identification:

We will need to verify your identity, so be sure to have your government-issued ID close by.

• Driver's license

• Passport 

Income Verification:

Verifying income can look different depending on your employement status and other factors. To make things easier, we've compiled a list of the most common documents used for income verification.

• Paystubs from the past 30 days

• W2 forms of the past 2 years

Self-employed? Here's what you might need: 

• Tax returns of the past 2 years

• Profit and loss statement for the current year

• W2 forms of the past 2 years (if applicable)

• Paystubs from the past 30 days (if applicable)

• Business returns (if applicable) 

Proof of Assets:

Depending on the assets you own, you might have to prepare the following documentation.

• Bank statements of the past two months

• Investment account statements of the past two months

• 401K statements of the past two months

Additional Information (if applicable):

Specific circumstances may require the need for additional documents.

• Divorce decree

• 1099s for disability or retirement income

• Child support/Alimony

• Explanation of credit inquiries and/or credit discrepancies

• Leasing agreement for any rented property

• Proof of ownership of other properties 

- Mortgage Statements 

- HOA statement

- Most recent property tax bill 

- Homeowners insurance policy 

*Please note, your Loan Officer may request additional documentation throughout your loan journey. 

Submission of these documents is not required until after you've completed an application and received a Loan Estimate. However, having them readibly available will set you up for success from the start. Be sure to keep these documents secure and up to date.

If you're ready to take the next step, we invite you to prequalify with Inspire Home Loans. Our knowledgeable Loan Officers are here to guide you through the process and ensure a smooth, stress-free home financing experience. If you have any questions about getting started, don't hesitate to Contact Us today!