Three simple steps take you from the beginning to the end of applying for a mortgage loan- research, pre-qualify, and apply. As you tackle each step, you will discover how easy the process actually is.
The first thing that you need to do is research the types of loans available and the interest rates and terms available. Once you have selected the loan and terms that make the best financial sense for you, you are ready to select your lender.
When you arrive at the lender’s office, it is time for pre-qualification. Pre-qualification is a simple process. The pre-qualification process is a time to collect all of the necessary income and debt obligations that you have on a monthly basis. This will determine your feasibility as a safe loan risk.
It is best to bring along some documentation with you to this initial visit. In particular, specific documents should be provided to verify your financial status.
You should bring the following documents with you:
ü Pay stubs for the last four weeks
ü Employment history for the last two years, including pertinent information such as employer’s name, address, and phone number
ü W-2 forms for the last two years
ü Proof of additional monthly income, such as bonuses or commissions
ü List of monthly expenses, including but not limited to loans, credit card debt, or alimony and child support payments
If the following forms of documentation apply to you, they should be brought along as well:
ü Divorce decree
ü Social security award letter
ü Disability letter
ü Copies of pension checks
ü Copies of retirement monies
ü Copies of alimony or child support checks received
Additionally, if the applicant is self-employed, the following paperwork should be provided:
ü Federal tax returns for the last two years
ü Profit statements for the last month
ü Loss statements for the last month
ü Balance sheets for the last month
Co-applicants will be required to provide similar documentation, and so, it should be brought to the initial meeting. You should also bring the proper form of payment. Bringing all of these items to the initial meeting will speed the process along.
Once you have been pre-approved, the next step is to complete the application itself. The mortgage consultant can help you with this step, essentially guiding you along. If you have any questions at this point, you should have them answered in detail now. The final step is to wait until all of your paperwork has been reviewed. The final decision should not take longer than a few days.