Qualifying for a mortgage and working with a lender
If you need a loan in order to purchase a property you will need to work with a lender and the common thing they will ask for is as follows:
1. W-2 forms or business tax return forms if you’re self-employed for the last two or three years for every person signing the loan.
2. Copies of one or more months of pay stubs from every person signing the loan.
3. Copies of two to four months of bank or credit union statements for both checking and savings accounts.
4. Copies of personal tax forms for the last two to three years.
5. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.
6. Copies of your most recent 401(k) or other retirement account statement.
7. Documentation to verify additional income, such as child support, pension, etc.
8. Account numbers of all your credit cards and the amounts of any outstanding balances.
9. Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.
10. Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.
11. If you have little or no established credit you may still get a loan but the loan will be based on non-traditional credit. To help establish non-traditional credit the lender will want letters or payment history evidence for regular payments made to utilities and other regular payments.
When working with a lender of mortgage broker have them help you do the following:
1. Determine if you have enough saved to cover your down payment and closing
costs including taxes, attorney’s fee, and transfer fees.
2. Get your credit in order. Obtain a copy of your credit report.
3. Determine how large a mortgage you can qualify for. Explore different loans options and decide what’s best for you. Determine if you qualify for any special mortgage or down-payment assistance programs.
4. Organize all the documentation a lender will need to pre-approve you for a loan.
5. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
