Loans and Insurance

Documents Required to Buy a Home in US

Buying a home is the dream of many people. However, the process can be tedious and full of paper work. It is not just about given the property owner some cash and moving in. There are very important documents required to buy a home in the US.

The list of paperwork needed to complete a house purchase definitely depends on the type of house you are in for. This is article will more importantly serve as a guide for first time home buyers.

I have listed and expounded on each of the eight documents you need to complete the process of home buying.

List of documents required to buy a home in the US;

1. Your Credit Score Report

Credit report is needed when buying your first home

Your credit report is very important document when buying a house in the US. The Credit Score Report shows your financial health, as to whether you can afford the property or financial institutions can trust you with a mortgage loan.

If you have a higher credit score, lenders are more likely to approve your loan request aand vice versa.

The credit score report contains the following information, but is not limited to:

Debt Information: This section shows all the information about all debts that you have. If you have too much personal debts, you should read on how to get out debt easily.

a. 6 ways to get out of debt faster
b. 14 Most Important Money Advice That Everyone Must Know

Payment History: This is a summary of your financial transactions relating to your debt repayment. It tells how often you take credit and how often you commit to paying back.

These effective debt repayment strategies would help pay off debts faster.

2. The Sale Deed

The Sale Deed also known as the General Warranty Deed is a valid contractual document that establishes the sale and transfer of the house from the seller to the buyer.

If you want to sell the house in the future, the Sales Deed may prove an essential document.

3. The Mother Deed

This document helps to claim ownership of a property. It is the document that shows that the property actually belongs to you.

Also, if you intent to finance your home purchase with a mortgage or loan, the Mother Deed could be used as collateral security.

Also Read:
a. Factors that affect the approval of your loan application

4. The Pre-Approval Document

If you are intending to finance your house purchase with a loan, then you will need this document get a mortgage pre-approval.

Although a pre-approval letter is not an all-important document in house hunting, is usually requested by financial institutions before they can approve your request of mortgage loan.

Documents needed for pre-approval may include;

  • Statement of your assets: This document contains information on all the assets you own, such as retirement accounts, stocks, investments etc.
  • Copies of your stubs: this document needs to be current, at least, within the last two pay weeks.
  • A copy of your driver’s license.
  • Your bank statements.

5. The Sale and Purchase Agreement

Before the payment is made and the property transferred to the name of the buyer, both parties reach a consensus on the terms of the sale.

Those terms and conditions are recorded in the sale and purchase agreement. The conditions may include the agreed price of sale (after a possible negotiation), the mode of payment for the property, the date of transfer of ownership etc.

6. The Building Approval Plan

Building plan is require when buying a home

When buying a home, the building approval document is a very essential document to ask for. This legal document approves that, the contractor was permitted by the Law or local authorities to build the kind of house at that location.

It certifies that, the builder was authorized before construction commenced.

This document is in two sections; the building plan and the layout approval. Both must meet the requirements of the laws and regulations guiding the building of properties in that jurisdiction.

7. The Letter of Possession

The builder or constructor provides the buyer the letter of possession indicating the date the buyer can take full possession of the property.

You cannot use the letter of possession as a claim to the house yet, especially if the house you are buying is still under construction.

So, if you want to have a claim to the building, you need to get the certificate of completion.

8. The Occupancy(Completion) Certificate

The completion certificate certifies that, the property has been inspected after completion and it met all the requirement of the laws and regulations.

Therefore, it is deem fit for inhabitation or the purpose for which it was constructed.

Always remember that, you need to get all the documents required to buy a home before making payment. This gives you complete ownership and claim on the property should any matters arise in the future.

If you are planning of immigrating, here is a complete list documents you will need to travel to the U.S.

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