Overview from Francisco Cabrera:
Preparing to buy a home in Florida is about understanding your true purchasing readiness before stepping into contracts. This checklist highlights the four pillars: income documentation, credit stability, cash-to-close planning, and team alignment.
1. Income and Employment Verification
Mortgage lenders review stability and consistency of income. The standard requirement is a 2-year history of documented earnings in the same line of work or related field.
W-2 wage earners need their two most recent paystubs and two years of W-2 forms. If you receive bonuses, overtime, or commissions, lenders generally average that income over 24 months to ensure reliability.
What if you are self-employed or your tax returns show significant write-offs? Do not assume you are disqualified. While conventional and government loans look at taxable net income on your 1040s, alternative documentation programs (such as 12- or 24-month bank statement loans or 1099 programs) allow business owners, independent contractors, and 1099 earners to qualify using gross business or personal bank deposits rather than taxable bottom-line income. Francisco reviews both paths upfront so you know which loan structure fits your real cash flow.
- Most recent 30 consecutive days of paystubs reflecting year-to-date earnings
- W-2 forms for the last 2 tax years (plus 1099s if applicable)
- Federal personal tax returns (Form 1040) complete with all schedules for the last 2 years
- Employer contact details for formal verification of employment (VOE)
2. Liquid Assets & The Cash-to-Close Difference
A common misconception is that your down payment is the only money you will need at closing. In reality, total cash to close includes your down payment PLUS lender fees, third-party title and settlement charges, initial escrow deposits for Florida property taxes and homeowners insurance, and prepaid interest.
Every dollar used for closing must be verified and seasoned in your accounts for at least 60 days.
- Two full months of bank statements for all checking, savings, and investment accounts (all pages)
- Gift fund documentation if family is assisting with closing costs (gift letter + proof of donor transfer)
- Clear separation of personal funds from business funds if self-employed
Crucial Rule on Large Bank Deposits
Avoid depositing cash or making irregular transfers between accounts without an identifiable paper trail. Lenders must document where every dollar comes from under federal anti-money laundering rules.
3. Credit Profile & Financial Conduct
While preparing to buy, protecting your existing credit is far more important than attempting risky short-term score hacks. Do not open new credit cards, finance a car, or close long-standing credit accounts while in the mortgage planning phase.
- Keep credit card balances below 30% (ideally below 10%) of credit limits
- Pay all bills on time every month; even a single 30-day late payment can impact score tiers
- Avoid co-signing loans for family or friends during this window
Actionable Next Steps
Save, print, or review these checkpoints with your advisor.
30 Days of Paystubs & 2 Years W-2s Gathered
Organized in PDF format showing year-to-date earnings.
60 Days Complete Bank Statements (All Pages)
All checking, savings, and investment accounts without missing pages.
Cash-to-Close Reserve Confirmed
Down payment plus 2-4% estimated for closing costs and prepaid escrows.
Credit Freeze Paused & No New Debt Incurred
No new auto loans, personal loans, or store credit cards opened.
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Every Florida borrower has unique timelines and financial goals. Book a free 15-minute strategy call with Francisco to review your options—honestly, in English or Spanish.
Cabrera Mortgage · Francisco Cabrera, NMLS #2348359 · Bright Horizon Lending Inc., NMLS #2565670