| Documents Needed at your Loan Application
Often people prefer to speak with the mortgage banker before house hunting to determine in advance what price range they can realistically afford and the mortgage amount for which they can qualify. This step is called pre-qualification and can save you much time and trouble by making certain you are looking in the correct price range.
The loan approval process begins with an interview where the prospective home buyer and the mortgage company meet to discuss and complete an application for the potential loan. You will need to bring information to verify your income and cash reserves.
For your first meeting with the mortgage company, you should bring:
- A Form of ID: drivers license, StateI.D. Card, Passport, Green card, etc.
- Last 2 years W2's or 1099 and tax returns
- Name and Address of employer for the past 2 years
- Most recent 1 month pay stubs
- Bank names and balances along with last 2 months of full statements.
- If applicable, 12 months of rent history with landlords name and number
- If applicaple, copy of Divorce Decree, evidence of payment or receipt of alimony / child support
- Re-Finance? Current Mortgage information, loans and credit account statements
- Realtor's, Insurance Agent's and Attorney's name and telephone numbers
- Copy of both selling/buying home purchase contracts signed by all parties
- A check for appraisal and credit report fees $________
Having these items on hand when you visit the mortgage company will help speed up the application process.
An upfront application fee (appraisal/credit report) is due during application signing. This fee is credited towards closing costs.
After the initial meeting with the mortgage company, you should have a general idea if you qualify for the size and type of loan you want. The mortgage company should let you know if you qualify for the loan within days. If you are denied a home loan, the mortgage company must explain the reasons. If this happens, the mortgage company will usually discuss any options with you.
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