WHAT YOU SHOULD KNOW
Before you start shopping for a new home, it is important to determine how much you can afford to spend and decide what you would like your maximum housing payment to be.
Following is information that will help to determine your mortgage eligibility:
1) Your gross monthly income
2) Your available funds for down payment
3) Your monthly expenses
4) Your credit score
It is always important to get pre-qualified from a Licensed Mortgage Professional. An Independent Mortgage Professional will be able to offer you different loan options and assist with finding the best available loan program for your needs.
The following information and documentation could be provided for a pre-qualification:
Your Social Security Number
Date of Birth
2 current consecutive pay stubs or, if self employed, your federal tax returns for the past 2 years; all pages and schedules
2 most recent years W2 forms for all employers
Business Tax Returns for the past 2 years and K1 statements (if applicable)
Bank Statements for the most recent 2 months
Investment and Retirement Account statements for the most recent 2 months
If you currently own Real Estate:
Mortgage Statement for the most recent month
Home Insurance Policy
Home Equity Line of Credit / Second Mortgage Statement
What to DO and what NOT to DO
During the mortgage process it is important to be certain that there are things that you SHOULD and SHOULD NOT be doing. Following these simple "tips" will ensure that your mortgage process is as smooth and easy as possible.
What you SHOULD NOT be doing:
Quit Your Job or change your employer. Lenders require documentation to evidence that you have been employed by your current employer for a minimum of 30 days. We understand that circumstances can change so you should be speaking with your Loan Consultant before making any decisions that may interrupt the mortgage process.
Change bank accounts or transfer money to and from existing bank accounts. Lenders require an explanation and documentation to evidence where all funds came from that are not direct payroll deposits.
Avoid depositing cash into your bank accounts. CASH IS BAD. This will probably be the first time you will ever be told this. Cash deposits are very difficult to document and most often have to be deducted from your account balance which could result in leaving a customer short funds to close.
Allow anyone to make a credit inquiry while you are in the mortgage process. Inquiries impact your credit scores and that can result in a higher interest rate or jeopardize an approval because of lowering the score that makes you ineligible for mortgage approval.
Co-Sign for anyone during the mortgage process. Any additional debt can impact your eligibility for qualifying for the mortgage loan.
Process another loan, purchase any other real estate, purchase an auto or take on any additional debt. Again, any additional debt can impact your eligibility for qualifying for the mortgage loan.
Apply for credit or complete any credit applications.
Start any home improvements prior to your appraisal. Lenders require for any incomplete improvements to be finished prior to closing. This is applicable to customers who are refinancing.
What you SHOULD be doing:
Contact your Loan Officer with any questions or concerns
Continue to work at your current employer(s)
Pay all your bills on all accounts on / or before the due date even if the account (i.e. Mortgage, Auto Loan, Credit Cards, etc.) is being paid off with the proceeds of the loan you are in process for. Keep all accounts current.
Respond to your Loan Officer / Processor / Underwriter immediately. This will ensure that your mortgage process proceeds as quickly as possible