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What Do You Need to Qualify for a Home Loan?

Getting a loan on your dream home is an important step in creating your own log home. Find out what you need to do to qualify.

What Do You Need to Qualify?
Photo Credit: Jens Lelie
Tom Coronato from Citizens Bank has helped scores of buyers secure log home loans by helping them put together a complete picture of their current financial positions. Here’s what he says he and other lenders need to help you qualify for cash:

  • A 700+ credit score is ideal
  • Two years of W2, 1099 and full 1040 (federal, not state) forms, both personal and business, plus K-1 form (if applicable)
  • Thirty days of pay stubs or monthly pension advisements
  • Your Social Security or pension award letter
  • Two months of complete bank statements for accounts, including savings, checking, stocks, etc. — every page, not just the summary
  • Your most recent quarterly 401k statement and/or other retirement accounts
  • A letter of explanation on any negative credit (if applicable)
  • A mortgage statement for your current home and any additional properties you own
  • An estimated contract for your new log home plan to justify the amount you want to borrow
  • A contract for the land on which you intend to build (a HUD-1 prior to October 2015; a CD after that date)
  • A 20 percent down payment

With this information, lenders will look at your income-to-debt ratio, any large or unusual deposits (per The Patriot Act) and your work history to help them determine your ability to repay the loan. If the bank deems you a qualified borrower for the amount you are requesting, there is plenty of money to be had.

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