You have decided to buy a home and need a loan. How much house can you afford? What should you take to the bank with you when applying for an fha loan Tucson? What should you know about applying?
So, how much house can you afford? The general rule for any housing is that you only spend a maximum of a third of your income. When you buy a house you will need to calculate in mortgage insurance, homeowner’s insurance, and property tax as well. In the home loan qualification process they will use your gross income instead of your net income.
When it comes to your income, you need to have two solid years of employment. So, when you go to apply for an fha loan Tucson take all documentation for the last two years of your employment. However, if you are self-employed you will need to take in three years of tax returns and your year to date profit and loss statement.
They will need to see all of your bank account information for the last three months. Also, they will need any documentation on retirement, stocks, bonds, money market, and mutual funds. Make sure to have all of this documentation gathered up for your application appointment.
Your credit information is very important because they will be basing whether or not to loan to you mainly off your credit history. Bring your most recent bill statements so that they can see what you currently have to pay on. Also, for your rental history, they will need information on your landlord or the last twelve months of canceled rent checks.
When you apply for anything you need to bring your drivers license or identification card and social security card. No lender can approve you without first verifying your identity. This is very important and you need to make sure that you bring the originals and not copies.
If you had a bankruptcy there are additional considerations. Do not apply until two years after your discharge. When applying two or more years after the discharge, bring your discharge papers. They cannot move through any of the application process without this documentation.
