Getting ready to buy in Central Park, Denver, CO: the lender paperwork checklist

Buying a home starts with a conversation with a lender, and that conversation goes faster when your paperwork is organized. I am not a lender, and I cannot tell you what you will qualify for. What I can do is point you to the Consumer Financial Protection Bureau’s checklist, which is a good neutral starting point.

The usual packet

The CFPB says to gather this information before you talk with lenders:

• A pay stub for the last 30 days
• W-2 forms for the last two years
• Signed federal tax returns for the last two years
• Documentation of other sources of income
• Your two most recent bank statements
• Documentation of where your down payment came from, such as account statements showing at least two months of history (if part of it is a gift, a signed statement from the giver)
• Documentation of a name change, if recent
• Proof of identity, typically a driver’s license or state ID
• Your Social Security number
• A certificate of housing counseling or homebuyer education, if you have one

Veterans and servicemembers can also get a certificate of eligibility from the VA if they want to consider a VA loan.

Tips from the CFPB for keeping it clean

• Include every page of multi-page documents, even pages marked “intentionally left blank.”
• Expect to update your packet at least once, because lenders want the most recent statements and pay stubs.
• If you are self-employed or have irregular income, ask each lender what extra documents it needs. Requirements vary.
• Your information has to be accurate. The CFPB warns that inaccurate information can lead to costly surprises later.

Prequalification versus preapproval

Both are letters from a lender saying it is generally willing to lend you up to a certain amount, based on certain assumptions. The CFPB is clear that neither is a guaranteed loan offer, and that lenders use the two words differently. Some base a prequalification on information you report, and issue a preapproval only after verifying it. Rather than focusing on the word, ask each lender what its letter is based on, and ask a local agent whether sellers in your area will take it seriously. The CFPB suggests exactly that.

Why this matters in Central Park, Denver, CO

Homes in the 12 villages of Central Park, Denver, CO vary a lot in price, age and fees, and so do the costs that sit on top of the loan. The Master Community Association (MCA) charges a regular assessment, for example, and some districts add a metro district levy. Your lender will want the full picture, and so should you. When you are ready to see homes, start with the village guides and which Central Park, Denver, CO village fits you, then browse the homes for sale search.

Sources: Consumer Financial Protection Bureau, “Create a loan application packet” and “What’s the difference between a prequalification letter and a preapproval letter?” This is general information, not financial or legal advice.