Planning ahead for your mortgage application will save you time and trouble once you start making offers. Here are a few quick tips on getting prepared to apply for a home loan.
- Provide your last two paystubs along with your W2s and Federal tax returns for the last two years (include all schedules). State returns are not needed.
- If you are self-employed, ask me for the additional documentation requirements.
- If you receive bonus or commissions or have changed your job or position, let’s talk.
- Collect two months statements for each asset account.
- Document any other deposits here as each could be scrutinized.
- Save all pages of your asset statements, even if some are blank or are just advertisements.
- Make copies of checks and deposit slips to prove they are not borrowed money.
- Deposit checks individually.
- Don’t deposit cash without clear proof of the source.
- If you own and are selling, provide a copy of the HUD-1 settlement statement.
- If you own and are not selling, you’ll need to qualify for both homes or meet the requirements for renting the current.
- If you are renting, show 12 months of canceled checks demonstrating timely payments and/or written verification from your management company. Ideally, pay your rent on the same day each month on or prior to its due date.
- If you live with family, you may need a letter stating that you live rent-free.
- Get a copy for your credit report from a mortgage advisor (mortgage scores are different click here to learn why).
- Identify any errors now and consult with us for the correct action to take.
- Avoid new credit or inquiries. These can lower your score and increase your rate.
- Ideally, you’ll have two years or more with your current employer.
- Consult with us before changing employers, position or method of compensation. For example, don’t switch from salary to commissions.
Credit is often a big question mark in the equation, it doesn’t have to be. Get your mortgage credit score and get on track for the home of your dreams!