Primary marketApplying for a Mortgage? What You"ll Need to Get Started
Often it can take days, even weeks, to finalize all the necessary paperwork
when applying for a mortgage loan, so you"ll want to be prepared when it
comes time to hand over the proper documentation to your loan officer.
Because preparing to buy a home can be very stressful, the last thing you
want to be doing at the last minute is digging through piles of paperwork
trying to locate last year"s tax forms or your bank statements.
By spending a little time getting organized early in the process, you"ll be
ready to hit the ground running when it"s time to apply for your loan.
One way to get organized is to start a home-buying file. Put papers, sales
brochures and other related information in the file, including credit data,
loan documents, real estate listings, inspection reports, area maps, and
insurance information.
For the initial loan application process, lender Freddie Mac recommends
gathering all your pay stubs for the past 30 days, W-2 forms for the past
two years, information on your long-term debts (car loans, student loans,
etc.), recent bank statements, tax returns for the past two years
(especially if you"re self-employed), proof of any supplemental income,
records of any past derogatory credit history that you"ve paid off, and
records of child support or alimony (either going in or coming out).
After you apply for your mortgage, Freddie Mac says your lender will
schedule a loan interview with you and give you a list of the documentation
you"ll need to bring to the meeting.
Typically that documentation includes:
Your social security number
Birth date
Most recent pay stub showing year-to-date earnings
W-2 tax forms and tax returns for the past two years
The names, addresses and telephone numbers of your employers for the past
two years
Bank account numbers and current balances of all bank accounts
Statements of current assets (individual retirement accounts, certificates
of deposit, stocks and bonds, etc.)
The value of your personal property (employee retirement accounts,
furniture, cars, collections or other valuable property, life insurance,
etc.)
All current loan creditor"s names and addresses, as well as the monthly
payments and total amounts due
If you currently own a home, the address, current market value, mortgage
lender, account number, current monthly payment and balance due on the
mortgage
o If you rent, the address, name and address of your landlord and your
current monthly rent
o If you"ve lived in your current address for less then two years, detailed
information for your previous addresses (name, address, phone of landlords)
If applicable, also bring:
A signed copy of your ratified sales contract with receipts for the
earnest money deposit toward the property
For gift money, a signed letter from the donor stating that you don"t have
to repay the gift
If self-employed, profit and loss statement and balance sheet for the past
two years
If divorced, a copy of your divorce decree or maintenance agreement along
with any amendments
A 12-month payment history of alimony or child support payments if the
payments are needed to qualify for the mortgage
Your school transcripts or diploma if you do not have two years of
employment history
If you own rental properties, your federal tax returns along with a
schedule of all real estate owned and the account number and address of the
mortgage company that holds the mortgages
If the property is rented, a copy of the current lease
By knowing what documents you"ll need and getting them together ahead of
time, you"ll likely be less stressed, you"ll get through the loan
application process more quickly, and you"ll ultimately be one step closer
to owning your house.