What Paperwork Do You Need When Buying a House?

Buying a home is a big deal. It takes a lot of steps, and you'll need to gather a bunch of papers to do it. When you buy a home, especially if you need a loan, there will be a lot of personal and financial documents to show how reliable you are with money. 

It's good to know what papers you'll need so you can get ready. This way, you won't be scrambling for documents at the last minute, and you can keep your cool throughout the process.
 

What Documents Will You Need?

Throughout the journey of buying your new home, you'll need different documents at certain points, like proof of how much money you make, where you’ve worked, what you own, and what you owe.

Here's a list of some papers you may have to show:
 

• Tax returns from recent years
• Your yearly earning statements from work, also called W-2 forms
• A note from your boss confirming your job and salary
• If you’re your own boss, you'll need your business tax returns and records of your income and spending
• Bank statements to show your savings
• Information about any retirement or investment accounts you have
• Stuff like your student or car loan bills
• Credit card statements
• Papers proving you own things like your current house or your car
• A list of the places you’ve lived for the last few years
• Any extra money you get like child support, disability payments, etc.
• If someone is giving you money to help buy the house, a letter from them saying it's a gift
• A photo ID like your driver's license or passport

 

Start by Checking Your Credit Score

Before you even step foot in a potential new home, it's a good idea to know what your credit report says. You generally need your credit score to be at least 620 to get a mortgage, but the higher your score, the better.

If your credit's not great, find this out early so you can work on it. Also, make sure your taxes are in order—they're essential for getting a loan.

Must Read: How to Talk Down the Price of a House
 

Getting Ready for Mortgage Preapproval

As you move forward, you'll reach a point called "mortgage preapproval." This is where you'll need to show even more papers. Be ready to give:
 

• Proof of who you are, like your driver's license or Social Security card
• Where you've lived for a bit
• Recent pay stubs and tax returns to show how much money you make
• Bank statements, going back 60-90 days
• Records for any other income sources you might have
• Statements for your other financial accounts, like investments or retirement savings
• Car titles or other property papers
• Bills for any loans or credit lines you have
• Getting preapproved tells you how much the bank might lend you and shows sellers you're serious about buying. But just because you can borrow a lot doesn’t mean you should spend it all—there are many other costs when buying a house.

 

When You’re Ready to Make an Offer

Once you find a dream home and you want to make an offer, you'll need to show you're serious by giving what's called "earnest money."

This is like a down payment to show you intend to buy, and it's usually about 1% of the home's cost. You've got to have this money ready before you sign any contracts.
 

Closing on Your House

Closing is when you finalize the deal, and there's another pile of papers waiting for you here. If you have an agent or a real estate attorney, they usually help you get these papers together. You'll see things like:
 

• Homeowner’s insurance proof
• Closing disclosure outlining your loan terms
• Copy of the purchase agreement
• If the home is brand new, you'll need a certificate that says it's okay to live in

 

Working with a Real Estate Agent

A trusted real estate agent can make the paperwork process much easier. They’ll guide you on what documents to prepare at every stage. It's like having a paperwork guru right by your side.

Remember, even after all the papers are signed, make sure you keep copies of important ones like the title to your house, the deed, and any insurance policies.
 

Wrapping It Up

Getting all the necessary documents together might not be the most exciting part of buying a house, but being prepared and organized from the start will help make the process smoother and less stressful. Keep this list handy, and you'll be ahead of the game.
 

Buy a Home with Section 8 Vouchers

Section 8, also known as the Housing Choice Voucher Program, helps low-income families, the elderly, and the disabled afford housing. This program isn't just for renting—it can also help eligible participants buy homes.

However, buying a home with Section 8 vouchers can be a complex process, so work closely with your PHA and a real estate agent experienced in Section 8 purchases to help navigate the requirements and find a suitable home.

Dig Deeper: What is Federal Rental Assistance?

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Find out if you're eligible for housing support here!