Phoenix Arizona Home Mortgage: Smoothing the Mortgage Application Process
Buying a home is exciting, but the process of obtaining a mortgage can be a little tense nerve. Fortunately, there are steps you can take to make the process easier.
Before you start looking for a house, first take the time to sit down with a mortgage broker. A qualified loan officer will review your income, debt and savings information and help you become prequalified for a mortgage. With pre-qualification, you will have a better idea of what you can afford, and have a better idea of what you need to do to get a mortgage.
Once you find the house you really like and make an offer, you enter a wait and see what period of time. You must complete all steps necessary to obtain the loan, then you have to wait while they evaluate your loan application for approval.
Is there any way you can automate the process? Well, you can help simplify the application, if you have all your documents together before applying – loan applications are the length and require a lot of paperwork. Just collecting the materials together in time takes some of the tension out of the application.
Income Verification "Of course the lender wants to make sure you have a stable job and able to make their monthly mortgage payments. Gather all the information regarding your income and stable employment.
Bring W-2 forms for the past two years to verify their reported income. They also include a current check stub to verify that they have not changed employers or income.
If you are self-employed, you can not have a W2. Instead, pick up copies of their federal tax returns (1040) for the past two years. You will need copies of your tax records if you receive a regular income from capital gains or interest income, if more than 25% of its revenue comes from commissions or bonuses, or if you have rental income.
If you are in business for yourself, find copies of their years of claims to date profit and Lost and any company or partnership tax returns.
If you are retired, bring copies of your letter of pension or social security award letter.
Verification of assets-company loans for any need for the records and all assets they may have.
Copies of bank statements for all accounts – to bring all pages of your statement, although not think it necessary.
Stocks, bonds, mutual funds and the statements of the past two months. Copies of the latest statements from 401k (or other retirement assets).
The explanations of all reservoirs and sources of funds.
Letters detailing any large gifts (deposits) as a gift for a down payment. Most financial institutions can provide a blank form. Include a copy of the check and a copy of bank deposit slip.
Credit Check – Your credit and debt ratio will be carefully scrutinized. The lender will obtain a copy of your credit report. You want to provide documents showing their current credit situation and explanation of credit problems.
If renting, give name of owner, address and telephone number.
Explanations of the items listed in your credit reports – such as late payments, credit question, layoffs, collections, judgments, liens, and copies of documents in bankruptcy.
If you are divorced, must include copies of their divorce settlement and any copies of child support agreements.
There are a lot of paperwork required to take a mortgage, but you'll find to do a little work ahead of time can actually facilitate the process.