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Can I Use My 401(k) to Buy a House? Yes, Here’s How

Redfin

The difference between these two accounts is that traditional 401(k) contributions are pre-tax, so youll be taxed once taking them out. For example, you may qualify for a hardship withdrawal to cover your down payment or closing costs. How does withdrawing from a 401(k) affect mortgage approval?

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The Ultimate Mortgage Loan Documents Checklist For First-Time Homebuyers

HomeLight

If you’ve recently gotten a new job with a higher salary, have a copy of your offer letter and start date from human resources (HR) to share with your lender. If they don’t automatically include overtime, ask your HR department to provide you with documentation of your entire income, not just your regular hourly rate. Closing costs.

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