If you’re looking to buy a house or other type of property and need a mortgage loan, there is usually a fair amount of paperwork involved and information that needs to be collected. This article by Susan Keenan describes some of the things that you will need to have at the ready to make the initial qualifying process a relatively smooth one.
So, you have finally taken the move and decided to purchase a home. Now, you need to get a mortgage so you can pay for it. It’s important to understand what you need to bring with you so that you can avoid any snags that might delay the process.
Once you have selected your lender, whether online or in person, it’s time to pre-qualify. In order to do this, you need to gather a few things that might not be readily accessible.
Make sure that you bring the following items for each person who will be named on the mortgage: pay stubs for the last four weeks, W-2 forms for the last two years with employment history including your employer’s name, address, and phone number, proof of any additional monthly income, including commissions or bonuses, and your list of monthly expenses, including other loans, credit card debt, or child support and alimony payments.
Sometimes other pieces of information are important as well. Therefore, if you have any of the following items, bring them with you to substantiate your claim: copies of any retirement income, pension checks, and alimony or child support payments that you have received. Plus, bring any of these if you have them: a divorce decree, social security award letter, or disability letter.
Even if you are applying online, you might still need these documents for dates and amounts. In some cases, you won’t have the document because it simply does not pertain to you. In other cases, the lender might not even ask you about it. Get it just to be on the safe side.
Special circumstances exist for those of you who are self-employed. You will need to have the following documents handy: federal tax returns for the previous two years, balance sheets for the previous month, loss statement for the previous month, and profit statement for the previous month.
Remember that anyone co-signing the loan will need to provide his or her information and to supply copies of his or her documents as well. Having all of this stuff ready and available can speed up the process to become qualified for the mortgage.
Plus, you need to find out the methods of payment that are available to you should you incur any expenses during the application process. Can you pay with a credit card? Is an electronic withdrawal okay? Do you need a certified bank check or will a personal check suffice?
Once you make it through the pre-qualification process, it should be smooth sailing. It may take a day or even a few days for your application to become processed and approved. Be patient and wait it out. Once you have your approval, then you can really relax.
Photo credit: The image in the upper left corner is a photo of an original handwritten mortgage document dating from December 5, 1894. After squinting at the handwriting for a while and looking at the larger sized versions, I determined that the mortgage was for “four messuages” in Stafford county “to secure £800 and interest”. Kudos to Dan Catt for this very interesting find!
Related article: Understanding Your Mortgage Repayment