Financial

Having a clear idea of your financial situation - income, expenses and debts gives you a much better idea of what you can afford and how much you'll need to borrow.

For lenders to verify this information, they need to look at your financial records. It's important to remember that you should include records for each person who will be an owner of the house. Be prepared when you visit the bank & make sure you'll be able to provide copies of the following documents:

• Paycheck Stubs
  Lenders are most interested in your average income. Not only will they want to see current pay-stubs, but also how much you've been making for the past two years.
• Bank Statements
  Most lenders will also ask you for copies of your bank statements. They are looking for a steady history of savings as well as maintaining a positive balance.
• Tax Records
  It's a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.
•  Dividends & Investments
  Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.
• Alimony/Child Support
  You can also include divorce settlements and/or child support, you as part of your gross income. Lenders will need to see a copy of your divorce/court settlement verifying the amount of the payments.

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