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Organize your Documents before applying for a Mortgage

  1. If you are salaried: provide two years W-2 and one month of pay stubs OR if you are self-employed: provide two years tax returns and a year to date profit and loss statement.
  2. If you own rental property, please provide rental agreements, leases and two years 1040’s tax returns.
  3. If you wish to speed up the approval process, please also provide three months bank statements (all pages) for each bank, stock and mutual fund accounts.
  4. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
  5. If you are NOT a US citizen, provide a copy of your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
  6. If you are a Veteran applying for a (VA) Loan - provide a copy of your Certificate of Eligibility & DD214
  7. Provide a copy of divorce decree, if applicable.
  8. Proof of Child Support, if applicable.
  9. Bankruptcy Discharge and explanation, if applicable.
  10. Copy of Driver’s license
  11. If you have been renting a house or apartment, provide 2 years residence history with landlord name, address, and phone number.
  12. Copy of the purchase contract

Buy with Confidence - Obtain a Mortgage Pre-Approval!

When buying a house, you can get pre-qualified or pre-approved. Most Buyers can get pre-qualified over the phone or on the Internet in a few minutes. However, a pre-qualification is not as beneficial as a pre-approval. The pre-approval process requires verification of your credit, income, assets and liabilities

The benefits of being pre-approved are clear:

  1. You will know exactly how much home you can buy.
  2. You will have a stronger negotiating position because the seller will know your loan is already approved.
  3. You can close sooner since your loan is already approved.

When shopping for loan programs and rates…

Think about how long you plan to keep the loan. If you plan to sell the house in a few years, you may save money by going with an adjustable mortgage. On the other hand, if you plan to keep the house for a long time, a fixed rate mortgage may be best for you.

Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. For example, 1 point on a $200,000 loan is equal to $2,000. The more points you pay, the lower the rate you should receive.

Compare different programs. Shopping for a loan can be a challenge. With so many lenders and programs to choose from, it’s sometimes hard to figure out which program is best for you. That’s where an experienced loan officer can help you make a decision that’s best for you. Compare rates, points, fees, monthly payments, and cash required to close.

Obtaining Loan Approval

Once your loan application has been received, the Lender will begin the loan approval process immediately. This process involves verifying your credit history, employment history, assets including your bank accounts, stocks, mutual fund and retirement accounts. An appraisal of the property will also be required. Based on your specific situation, additional documents or verifications may be required.

To improve your chances of obtaining loan approval:

  • Fill out the loan application completely.
  • Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
  • Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
  • Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, contact your lender.
  • Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
  • Closing the Loan
  • After your loan is approved, you will be required to review and sign a commitment letter issued by your Lender.
  • Review the commitment letter and make sure the interest rate and loan terms are what you were promised. Verify that your name and address on the loan documents are accurate.
  • Make sure you have enough funds available for your down payment and closing costs. A bank certified check is usually required.
  • If all documents appear in order, sign the loan documents and return them to your Lender.
  • Your loan will normally close shortly after you have signed the loan documents. Stay in touch with your attorney or closing agent, perform a final walk-through inspection and prepare for your move.