Get your VA and FHA Checklist in order
It is said that there is "no better time than the present." And that is especially true when you are thinking about purchasing a home and preparing for the application process. There is much that an FHA or VA loan underwriter needs to consider before approving a loan to you as a potential homebuyer. Preparing this important documentation in advance can save a heap of time in the underwriting process and can move you along into a home of your own sooner.
What can you do to prepare for the VA/FHA loan application process? There are three types of information that you must supply to an underwriter, including your personal information, employment and income status, and your savings and investments. Follow along with our VA Loan Checklist and you will be sure to have everything ready during the process.
Personal Information
Your personal information is important to verify identification and living arrangements. Your personal credit history will be analyzed as well using your Social Security number.
- Current Address: You will need to provide your residence address for the last two years.
- Driver's License: Should be a current driver's license or an official state identification.
- Social Security Number: Have your Social Security card available for authentication.
- Green Card or Work Permit: If you are living and working in the United States but are a citizen of another country, it is important to show verification of legal work status.
- Certificate of Eligibility and DD-214: (for Veterans only)
Employment Information
Your employment history and income is an important factor in determining whether you can afford a mortgage and have steady employment to continue to pay a monthly mortgage.
- Current Pay Stubs: You should provide copies of the last two months of your employment pay stubs from all employers, verifying your current monthly income.
- Tax Returns and W-2's: Your past two years of tax returns, along with your employer W-2 forms, should be submitted.
- Name/Location of Employer(s): Gather information from your employers for the past two years.
- Self-Employed: Self-employed individuals will need to provide at least three years of prior tax returns, as well as balance sheets and income/loss statements for the same time period.
- Divorce and Spousal Support: Individuals who are divorced and are receiving spousal support may include this information as part of their income.
Savings Information
Not only is your monthly income used to consider your financial mortgage obligation, but your savings and investments are an important asset to analyze what you are eligible for to pay as a down payment on your new home. These also demonstrate your financial reserves that will keep you from defaulting on your mortgage should you encounter employment difficulty, such as a layoff.
- Bank Account Info: You should provide copies of statements for the past three months of all bank accounts, including checking, savings, money market, certificates of deposit, etc.
- Investment Accounts: Recent statements of any investment accounts, including 401(k), mutual funds, stock market accounts, etc.
- Other Real Estate: Complete information should be provided on any other real estate assets that you own.
- Personal Property: A personal statement of the value of your personal property including furniture, jewelry, automobiles, etc.
FHA and VA insured loans are a good route for any current or previous home owner to purchase a new home. The application process is extensive and the documentation noted above is essential for getting approval from an FHA/VA underwriter. But you can have an advantage before contacting an FHA/VA approved loan company. With a little planning and research, you can get organized before making the application and be on your way to home ownership quicker than you think.
See a related article: VA Loan Program Basics
Get Started With Your VA Loan Request
HAVE A QUESTION?
If you need advice concerning Veteran Home Loans, feel free to contact a VA mortgage specialist online or call 800-405-6682. Specialists can help determine whether a Veteran Home Loan is the best financial decision for you.
