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One More Piece Of The Puzzle
Gather your paperwork!
It’s time to apply for a mortgage loan…..which is really a very simple process. The mortgage company just wants to be sure that you can and will make your payments to them. They will want to see your credit report, verify your employment as well as determine what the house is worth. Remember to check out our "bundle package" for your free credit report.
There are many different kinds of mortgage loans……with different requirements for loan approval.
For a “full doc” loan – which means that you are providing full documentation for the loan. This type of loan is usually used when you have W-2 income, which is easily verifiable. You should gather the following documents and have copies of them available for your loan originator:
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Last 2 years tax returns or W-2’s
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Last 3 months bank statements
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Last 3 pay stubs
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Recent 401-k or investment account statements
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List of creditors, loan obligations, etc.
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List of assets including real estate
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If you have a home under contract, you may be asked to provide the paperwork
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If you are self-employed, provide current year-to-date Profit & Loss statement
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Any applicable divorce decrees
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Any applicable bankruptcy documents including Discharge Notice
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Any applicable rental property documents such as rental agreements and payment schedules.
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Previous addresses if you haven’t lived at your present address for 2 years
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Previous employer if you haven’t worked for the same employer for 2 years
Other loan programs include:
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Stated Income with verified Assets – You will simply state your income, but provide proof of your assets.
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Stated Income with Stated Assets – You will state both your income and assets
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No Income No Assets – You will not provide documentation for either your income or your assets.
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No Documentation – You will not be expected to provide any documentation.
Often these loan programs offer far more flexibility, but will come with higher interest rates. They are attractive to self-employed people, who sometimes don’t want to disclose their income and liabilities. But, you will have to have a good credit score to obtain this type of financing. But a word of caution - Don't get caught in a "low-interest" teaser rate that will allow your rate to quickly increase. Take into consideration (1) the reason for your purchase, (2) how long you plan to stay in the home and (3) how easily you can afford the payment increases.
You will normally be asked to pay for your credit report, and appraisal when you are applying for a mortgage. This can amount to approximately $350.00 - $450.00.
As always, please contact us with any questions you might have. We look forward to hearing from you! We're your Nashville Exclusive Buyer's Agents.
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