Are you planning to purchase a new house? Well, that is really great news. But before you decide to give the purchase offer, it is important that you gather all documents that will be required in home buying. Having all the papers on hand lessens the chances of being rejected when you apply for mortgage. They are very important since lenders rely on the information reflected on your documents to ascertain your creditworthiness and your ability to payback your loan.

If you ask what these documents are, check out the following items. The things mentioned are the usual documents required by lenders for mortgage application.

1. The W2 forms- This is known otherwise as the wage and tax statement. This is prepared by your employer. You should get a copy of this form that was submitted for the previous two years. 
2. Copies of tax returns for the previous 2 years must also be prepared and submitted. 
3. Banks statements- Copies of your account statement should also be submitted. It should reflect transactions that were made for the past 2 months. Others claim that lenders require statements for the past three months. 
4. Proof of income- You need to prove to your lenders that you are actually receiving income from your employer through presenting a copy of the most recent pay slips issued to you. 
5. A copy of the earnest money check must also be submitted. All you have to do is to photocopy the issued check. This will then be used for accounting purposes that will be used on the closing day.

There will be other documents that are very much necessary in pushing your seller to accept your purchase offer. Sometimes, it is difficult to buy homes when there are competitions in the market. Hence, the technique is to show that you are dead serious in making the purchase and of course, you also have to express your intention through writing.

If you happen to get pre-qualified for the loan, the pre-qualification letter can also be presented to your seller to prove that you have the capacity to pay for the house. But before that, you need to make a purchase offer to express your intention to buy. The purchase offer is very important as this outlines your conditions and purchase price that you are willing to take.

Another document that will be necessary is also an agency disclosure. This is also important to show that you clearly understand the role of the agent or your broker in the home buying transaction. In this document, the real estate agent or broker will disclose who they are working for and who will pay their commission.

Documents needed for home buying can vary depending on the demands of the lender. They are standard in mortgage application and must be complete before further processing could take place. 
Now, do you see the importance of preparing the documents? Therefore, start compiling now before you jump into home buying. After all, it is for your advantage.