Applying For a Twin Falls Mortgage: 6 Documents You’ll Likely Need

If you’re applying for a Twin Falls mortgage, it’s a good idea to start by organizing your financial documents. Most lenders will require various forms of documentation for your mortgage application, read on to learn more about the documents required.

Top Documents Needed For a Twin Falls Mortgage:

Tax Returns

When you apply for a mortgage loan, the lenders and banks want to know your complete financial story and will examine all aspects of your financial life. 

Depending on your employment status, the lenders usually ask for one to two years’ worth of tax returns. The main objective of this requirement is to verify that your annual income is consistent with your reported earnings, and that there are no significant fluctuations in your income from year to year.

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Paystubs, W-2s, or other proof of income

When you apply for a loan, your lender will likely ask you to provide your paystubs from the previous month or so. Although your tax returns can provide an overview of your income and financial status, paystubs help lenders determine your current earnings and ensure that everything is in order.

If you have any additional sources of income, such as social security benefits, investment or rental income, a side hustle, or child support, your lender will want additional documentation for those.

Credit Report

In order to gauge you as a borrower, your lender will likely pull your credit report (with your written permission).

Different loan programs will have different qualifications as far as your credit score and history.

  • FHA loans – This type of loan is commonly known as the first-time homebuyer loan, but you don’t need to be a first-time buyer to use it always. These loans are backed by the government and require a minimum credit score of 500 to be approved. However, your credit score will also affect your down payment. If your score is below 580, you will need to put down 10%, whereas if it’s above that, you can generally put down as little as 3.5%.
  • VA loans – VA loans don’t require a certain credit score to qualify so individual lenders can set their requirements. Low credit scores are likely easier to get away with on a VA loan than a conventional loan.
  • USDA loans – Another government backed loan program, there aren’t set credit requirements from USDA. Also, this is a zero-down program is popular in more rural areas (outside Twin Falls City generally).
  • Conventional loans – Conventional loans are not government-backed loan programs and will likely require a credit score of at least 620 and around the mid-700s to qualify for better rates.
  • Jumbo loans – The credit requirements for jumbo loans are typically the strictest because of their large amounts. You may need a score in the low-to-mid 700s or above to qualify.

Bank Statements

When evaluating your risk profile, lenders will review your bank statements, investments, and insurance assets.

Lenders require borrowers to have reserve funds to cover mortgage payments for several months in case of an emergency. Additionally, they verify that the down payment money has been in the borrower’s account for a while and did not just appear recently.

If you are receiving a gift from family or friends to purchase your home, the lender will require a letter confirming that the funds are a gift, not a loan.

The letter will need to state a variety of things, such as the person’s relationship to you, the amount of money, signatures, etc. Your lender will give you the exact requirements.

Photo ID

As with any major purchase or process, you will need to provide a form of photo ID, such as a driver’s license, to verify your identity.

I hope this helped you get a better understanding of what you’ll need for applying for a Twin Falls mortgage loan.

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