Mortgage Application Checklist
A mortgage application is not a simple little form like many of us are led to believe. In actuality the whole process of obtaining a mortgage is complicated but with the help of a loan consultant (provided by the lender) it can be simplified to an easier to use and understand format.
There are several things that one can do to make the entire process go smoother and in the end speed it up to a certain point. Speed is very important to most people as they are anxious to move into their new home. Mortgage lenders do need certain things before the application can be completed. These are general items that are not difficult to come by for anyone who is prepared to make the step towards owning a home.
Most often a mortgage company will give a pre-approval based on the verbal information you provide to them. This will ensure that you can make an offer on the house that you desire to purchase. Once all that is taken care of you will need to go through the complete application process in which the lender verifies all of the verbal information that you provided to them. This is commonly known as the application process and it usually takes place in person with a mortgage lender or broker.
The first thing that you will need to bring to the meeting with the lender is your proof of employment for the last two years. The most common for of proof is the W-2 forms you receive from your employer at tax time. You do not need to be the actual W-2's but instead make sure you get a clear photocopy made. The copy will go in your file. The lender will also want to see your most recent pay stubs for the last thirty days. Again, photocopies are the best choice.
You will also need to make sure that you have proper ID with you. A copy of your drivers license and social security number is the most common method for identification. This is to ensure that you are who you say you are. Obtaining a loan under a false name or pretenses is illegal in the US and punishable by law.
If you are self employed take your last two years tax returns to prove that you have had sufficient income over the last two years.
Make copies of the last two months of asset statements from you bank as well. This includes savings, checking, and all other accounts that you want to use as qualifying income.
Make a list of all account numbers, balances, and minimum payments due on debts that you have. This will tell the mortgage lender how much money you have to pay the monthly payments on the home.