"Mortgage Preparation Checklist: What to Do Before You Shop"

Your tax returns, bank statements and down payment plan can be ready before you have a home picked out. That's the preparation I want us to do while we have time to work through it together.

Before you start looking seriously at homes, talk with a lender, organize your income and asset documents, review your purchase funds, and start getting realistic insurance and payment estimates.

I'm Jeff Moran, a mortgage broker in Bluffton, South Carolina, originating since 1996, licensed in fifteen states, NMLS #483943, through C2 Financial Corporation.

I call this getting your ducks in a row. We can review what applies to you and keep track of anything that still needs an answer. You can use this checklist a step at a time.

What should be on my mortgage preparation checklist?

1. We have talked about your plans and payment

I'd like to know what you're considering, when you'd like to move and what monthly payment would feel comfortable. Then we can look at the preparation your situation needs, including any home you're selling or income that's changing.

2. Your income documents are ready for review

Please have the income documents we request lined up so we can review them before you make an offer. I want us to understand how you get paid and what we can use for your loan while there's time to work through the questions.

The reason to send your documents before an offer is that we can review the information behind your financing early. The document organization guide helps you put the requested files together.

3. We have reviewed your bank statements and deposits

I want your bank statements prepared and reviewed, including a conversation about any large deposits. Please tell me about money that has moved between accounts or that you're expecting to receive for the purchase.

The bank statement and deposit guide explains the documentation questions in more detail.

4. We know where your purchase funds will come from

Your down payment and closing costs need a plan, including any money you'll move from an investment or retirement account. I'd like us to talk through that before you transfer it.

You can use the purchase-funds planning guide to identify the accounts involved and the records to discuss with me. We can also talk about how much you want to keep available afterward.

5. You have started the insurance conversation

I'd like you to speak with an insurance agent while you're considering areas and types of homes. We want realistic estimates in the payment discussion early, then a quote for the actual home and a decision about your agent promptly after an accepted offer.

The homeowners insurance guide walks through that conversation, including the coverage questions to take to the agent.

6. We have identified the costs to check for each home

I want us to ask about property taxes, HOA or POA dues, what the dues cover, and any community entry or membership costs. For a condo, I'd also want to understand the association's insurance and the coverage you would need separately.

The condo financing guide explains more of that review. We will confirm the costs for the actual home.

7. We understand the next financing step

We can discuss the credit review, what has been reviewed in your file and what still needs to happen before an offer. I'll explain the next step for your situation and the questions we need to address together.

The pre-approval letter guide explains the letter's role and the review behind it.

Keeping your checklist useful

For an invented planning example, suppose your income documents are ready but your purchase funds are spread across two accounts. You can mark the income review complete and leave the transfer plan open for our next conversation. You can keep looking at homes while we work through that question.

I'd note what we still need beside each unfinished item. Downloading documents and having them reviewed are separate steps.

Common questions

Do I need to choose a home before talking to a lender?

You can start preparing before you've chosen a home. My goal is to review your documents, funds and payment expectations early, then discuss what the specific property will add to the process.

Do I need every kind of income document on a general checklist?

We will confirm the documents that apply to your income and loan. A general checklist helps us identify the relevant sections; your file needs its own request.

Should I move my down payment money before we talk?

I'd like us to discuss the source accounts and your transfer plan first. We can identify the records needed for your loan before you move the money.

Can I use this checklist if I have bought a home before?

Yes. We can use it to review your current income, available funds and the costs of the next home, including anything that has changed since your last purchase.

You can bring this checklist to our first conversation and we can work through the parts that fit you.

Estimates and educational information are not a loan approval or commitment to lend.