Getting prepared to apply for a home loan

 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.

getting prepared to apply for a home loan

Income:

  • 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.

 

Assets:

  • Collect two months statements for each asset account.
  • Document any other deposits here as each could be scrutinized.

 

Your Statements:

  • Save all pages of your asset statements, even if some are blank or are just advertisements.

 

Deposits:

  • 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.

 

Current housing:

  • 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.

 

Credit:

  • 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.

 

Employment Stability:

  • 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!






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2016-11-08T19:02:10+00:00 Categories: First Time Home Buyer, Home Loans, Mortgage|