Monthly Archives: October 2014

Once you find the perfect home, the next step is to apply for a mortgage. You will need to provide detailed information in order to receive your loan approval. Below is a list of standard documents that are required for just about everyone. Depending on your situation, you may be asked for more or less information. Use this checklist to help you prepare in advance, so the application process is quick and easy.

Mortgage Checklist

Personal Information

• Photo ID
• Proof of Social Security number (copy of SS card or W2 statement)
• Residence addresses for the past two years
• Copy of green card, if not a U.S. citizen

Employment

• Pay stubs (past 30 days)
• Names & addresses of each employer (last two years)
• W-2s (last two years)
• Tax returns: 2-year returns are required for the self-employed

Banking

• Three months of statements for: bank accounts, mutual funds and investment accounts
• Large deposits: explanation and source of deposit. If deposit was a gift you need: signed gift letter, copy of gift check and copy of deposit receipt.

Property Information (if in contract)

• Purchase agreement
• MLS sheet and legal description
• If you already sold your current home: need copy of settlement agreement
• If you are currently selling your home: need copy of listing contract
• Value of personal property and furniture

Business owner (own 25% or more of business)

• Corporate / Partnership tax returns

Self-employed

• Last two years of tax returns (with all pages and schedules)
• Profit and Loss statements (for current year) prepared by an accountant
• K1’s for last years for all S-Corps

Retired

• Pension award letter
• Social Security award letter

Rental Property

• Current rental agreements and tax returns (last two years)
• Child support as income
• Need copy of divorce settlement
• Need copies of cancelled child support checks (12 months)

Divorced

• Copy of divorce decree
• VA […]

1. Get your credit in order

When applying for a home loan, your credit score has a big impact. So borrowers should do everything they can to boost their credit score before they apply for a mortgage. Paying down credit cards, paying your bills on time, and checking your credit report for mistakes are just some of the ways you can work to improve your credit score.

If you are thinking about buying a home in the near future, before you start house hunting or get pre-approved for a loan, it’s a good idea to check your credit report and find out what your credit score is. You are entitled to a free credit report once a year from each of the three credit bureaus – Equifax, TransUnion, and Experian, which you can access at www.annualcreditreport.com.

2. Know your down payment options

Coming up with a down payment can be the one of the biggest obstacles for first-time homebuyers. It can be challenging to save for a down payment, even if you have a steady income and decent credit score. But with the right planning and budgeting, you can reach your savings goals faster than you think. If you aren’t able to make a sizable down payment, another option is to use gift funds from a relative. As long as the borrower has 5% of their own money, gift funds can be used for the rest of the down payment. It’s also a good idea to talk to your lender to see if you qualify for down-payment assistance. Knowing what your options are and how much you will need to save before you start the process will help prevent any surprises along the way.

3. Get a cosigner

If your credit […]