Be Prepared When Applying for a Home Mortgage
A Home Buying Article Contributed by Elizabeth Fox-Wise
Do Your Homework before Applying for a Mortgage
There are things you can prepare before going to a lender to apply for a mortgage, that will speed up your mortgage application process. In today's fast paced world, we have modified many things that we do to help the "red tape" keep up the pace. The mortgage application process is not exception.
It used to be that when you applied for a mortgage, the lending institution would mail out forms to banks, employers, etc. to obtain verification on your application statements. Today, however, to help the process move faster, "Alternate Documentation" if becoming more widely acceptable. This means that underwriting answers can be obtained with information and documentation supplied by the mortgage applicant instead of having to wait for verifications to go out and come back through the postal mail.
Therefore, if you do a little bit of leg work in advance of applying for your mortgage, the process will go much more quickly, which can be important if you have located your dream home.
Income and Asset Documentation You Will Need for Mortgage Application
The lending institution will require proof that you make what you state that you make for income and that you own the things that you claim that you own.
To document your income, if you are traditionally employed, you should have your W2 forms from the last two tax years and your most recent pay stubs covering a thirty day period. If you are self employed you will need to bring your Federal tax returns (1040's) for the last two years and a Year to Date Profit and Loss Statement for your business. If you are retired, you will need a Pension Award letter. And if you are disabled or for some other reason collecting Social Security, you will need to have your Social Security Award letters.
To document your assets you will need bank statements for the past three months on all of your bank accounts. If you own stocks, bonds or other investments, bring the past three months of statements for them as well. You should also bring your most recent 401K or other retirement account statement. Be prepared to answer questions about any large deposits made into any accounts and an explanation for them.
Other Things to Have Ready When Applying for a Mortgage
Depending on your situation, when you apply for a mortgage, you may want to have some credit items on hand.
If you are currently renting, the lending organization will want your Landlord's name, address and phone number so they can verify rental.
Review your credit report in advance and be prepared with an explanation for anything that might show on the report such as late payments, charge offs, and judgments.
If you have already made an offer on a house, you should have a copy of the purchase agreement.
If the purpose of your mortgage application is to refinance your current your mortgage, you will need a copy of your most recent mortgage bill and you may need a copy of the Note on your existing mortgage.
Doing your homework and having all of these things on hand before you approach the lender for a mortgage, will make the process go much easier and quicker and get you into your new home much faster.
