always need paperwork that verifies every details of your financial life like income, debts, assets and more. Given below is the checklist of the documents one needs to gather before applying.
- You need to have your wage and tax forms from the previous two years, if you get a paycheck.
- If you own a business one needs to have their profit and loss statements.
- Most recent federal tax return and possibly the previous two tax returns.
- A whole list of your debts such as credit cards, car loans, along with minimum monthly payments and balances.
- List of property, including bank statements, real estate statements and records of other investments.
- Cancelled statements for your rent or mortgage payments.
There are several benefits of a having a mortgage, so a little short time pain can often result in long time gains.
- A mortgage makes home ownership affordable: Buying a home is likely to be the biggest purchase one will ever make. The amount you pay back every month is more manageable and affordable.
- A mortgage is a price-effective method of borrowing: Interest rate on mortgages seems to be lower than any other form of borrowing because the loan is protected against your property.
- Tax break: The mortgage might be the biggest tax break available to you. One can easily deduct interest from the mortgage loan.
- Pay off mortgage faster: Paying more on your mortgage monthly is not always allowed according to the loan terms, so it gives an option to choose a lower term to pay off the mortgage earlier.