Privacy Protection for First Time Homebuyers
Buying your first home is filled with many other first-time experiences, one of the most common being applying for a mortgage. While many lenders have simplified this process over the years, the need to verify your debt and income almost always comes into play. To do this, your lender will likely request lots of information, information that you’ve repeatedly been told to keep in a safe place and not share with anyone. While you may feel hesitant about sharing such confidential information, rest assured that there are federal and state laws in place to protect you. In fact, the Consumer Financial Protection Bureau says that to even receive a loan estimate you should be prepared to provide a prospective lender with the following:
- Your name
- Your income
- Your Social Security number
- The address of the home you plan to purchase or refinance
- An estimate of the home's value
- The loan amount you want to borrow
As you move forward through the purchase process, you may be asked for even more information. Information that may be requested includes:
- Pay stubs
- W-2 forms
- Tax returns
- Bank statements
You might wonder why lenders need so much confidential information. And while yes, normally you would keep this information strictly confidential, it is both reasonable and safe to share these documents with your lender as they’re necessary to confirm your income as well as your debt obligations. Of course, you always have the right to ask your lender why they need certain documentation and they will certainly be ready with an explanation. Having a trusted and experience real estate attorney to guide you through your home purchase can also provide a level of comfort – comfort knowing that you’ve got an experienced professional looking out for your best interests.
For more on privacy protection for first time homebuyers, watch our video on privacy assurance.