In order to apply for FHA loan consideration, you will need several documents. The FHA loan approval process adheres to a strict set of rules to make sure that the loans are done properly. Here are some of the required documents that you will need when applying for an FHA loan.
1. Pay Stubs
When you apply for an FHA loan, you will need to bring your pay stubs with you. Typically, the lender will require that you bring in one month's worth of pay stubs. The lender also wants the pay stubs to show your year-to-date income totals. This is an essential step, as it shows that you currently have a job and how much you make over the course of a month. This helps the lender determine how much of a mortgage payment you can afford.
2. Last Two Years' Tax Information
If you are a salaried employee, you must bring in your W-2s from the last two years. If you are self-employed, you will have to bring in the last two years' tax filings. This helps the lender determine whether or not your work situation is stable and long term. Giving someone a 30-year mortgage requires a lot of faith, and the lender wants to know that you can pay for it over the long-term.
3. Other Income
If you qualify for Social Security, a pension, or a retirement account payout, provide proof of that. If you are relying on one of these to provide some of your monthly income, without proof, it may look as though you do not have enough money to support your mortgage.
4. Bank Statements
The lender will also want to see your bank statements from the last two months in order to see exactly how much money you keep in reserve. Based upon the size of your loan, the lender will like to see a certain amount of money in there.
5. Explanation of Credit Problems
If you have had any blemishes on your credit file in the past, the lender will want some sort of a written explanation as to why you had them. This will help them to determine if the issues were really your fault, or if you were the victim of extenuating circumstances.
6. Investment Information
If you have any investments, they will also want to see your detailed account statements. Some people make a substantial amount of their income from investments. If you do make some from investments, this will only help your case for loan approval.
They will also want to see your driver's license and Social Security cards if you have them.
8. Landlord Information
If you were a renter, the lender will want to contact your landlord of the last 12 months. You will have to provide the landlord's name, address, and phone number.
9. Sales Contract
The lender will also want to see a completed sales contract on the property that you want to buy. It should have all of the information about the property as well as the listing and buyer's agents' information.
Can you use 12 months bank statements for FHA loans?
When you want to apply for an FHA loan, you will have to provide the lender with many different types of documentation. One of the most important aspects of this process is providing the lender with your bank statements. If you want to take 12 months' worth of bank statements, this can only help your chances. However, you are generally required to provide them with only two to three months' worth of bank statements in most cases. In addition to your bank statements, you will have to provide the lender with other documentation, such as your tax returns and your pay stubs.