What Do You Need to Qualify for a Home Loan?

 Photo by Tierra Mallorca / Unsplash

Tom Coronato from Federal Savings Bank has helped scores of buyers secure log home loans by helping them put together a complete picture of their current financial positions. Here’s what he says he and other lenders need to help you qualify for cash:

• A 700+ credit score is ideal

• Two years of W2, 1099 and full 1040 (federal, not state) forms, both personal and business, plus K-1 form (if applicable)

• Thirty days of pay stubs or monthly pension advisements

• Your Social Security or pension award letter

• Two months of complete bank statements for accounts, including savings, checking, stocks, etc. — every page, not just the summary

• Your most recent quarterly 401k statement and/or other retirement accounts

• A letter of explanation on any negative credit (if applicable)

• A mortgage statement for your current home and any additional properties you own

• An estimated contract for your new log home plan to justify the amount you want to borrow

• A contract for the land on which you intend to build (a HUD-1 prior to October 2015; a CD after that date)

• A 20 percent down payment

With this information, lenders will look at your income-to-debt ratio, any large or unusual deposits (per The Patriot Act) and your work history to help them determine your ability to repay the loan. If the bank deems you a qualified borrower for the amount you are requesting, there is plenty of money to be had.

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