Be thorough and up front. Have all of your financial information, assets and liabilities, documented with account numbers and balances. Checking account, savings accounts, certificates of deposit amount and maturity dates, IRA/ SEP, 401K, brokerage accounts, etc. will be verified. Be prepared to explain large deposits within the past few months. Was that money borrowed or a gift? If it was, say so. Are you borrowing from your retirement account?
When it comes to recurring debt, this is where most applicants miss the mark. You MUST disclose all your debts. Do you have a second home that you will be renting out? Have you co-signed on a loan of ANY KIND? Do you have student loan obligations?
You will need to provide a current pay stub, w-2 and tax returns for the past couple of years. If you are self-employed, you will include your Schedule C (P&L). As an employee, do you have reimbursed expenses?
You will need all of the above – and perhaps more. Keep your documentation on hand because everything will be verified again just before closing. Lastly, and most importantly, do no incur any new debt. Wait until title transfer before making any major purchases.
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