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Purchasing a home is a complex legal and financial process, which can be essentially daunting if you're going through it for the first time. According to EXIT Realty Upper Midwest, the fastest growing real estate franchise in the Midwest, a little preparation now can make your entire transaction smoother and stress-free. Before you even begin house-hunting, they recommend gathering together some of the essential documents you'll need and getting pre-qualified for a mortgage, which will put you in a better bargaining position when you finally find your dream home.

Typically, lenders will want to see:

  • Proof of income. Usually, you'll need a pay stub and at least one W-2, but some lenders now ask for two years' worth of W-2 statements.
  • Bank and tax information. You generally have to have your last 30-day statement on hand for every account you own, and in some cases lenders may ask for as much as 3 months' worth. These days, most lenders can access your tax return directly from the IRS (with your permission).
  • Any other income information. Self-employed borrowers will need to submit a profit-loss statement, and you'll also have to verify any rental income you claimed on your loan application.
  • Additional documentation. Depending on your situation, you may be asked to provide divorce decrees, bankruptcy discharge papers, or other documents. Those who rent may be asked for a year's worth of canceled rent checks to prove the rent was paid on time.

For more help with the home-buying process, to view homes and commercial real estate for sale, or to learn about beginning your career in real estate, visit EXIT Realty Upper Midwest online now, or just call (612) 414-4022.

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