People often have questions about applying for a mortgage…sometimes worrying if they will qualify and often wondering about what information they will be asked to provide when they talk to a lender.
You can usually get a good sense of how much you qualify for right over the phone, which is useful to know even if you decide to wait to complete the application process. Knowing what your price range is should you decide to buy, you can do some online looking to see what kind of home you may be able to puchase in different neighborhoods. Your lender will also be able to give you advice on enhancing your credit score to get the best interest rate and other things you can do to increase your buying ability.
Once you decide you are ready to move forward, complete the application process BEFORE you seriously look for a home. You should be financially underwritten before you make an offer in our Twin Cities market because you will be expected to provide a letter from your lender with your purchase offer stating you are pre-approved for financing. They will expect you to use the lender providing the letter to complete your purchase, and sometimes acceptance of your offer is at least partially based on their confidence in your lender.
You never know when you are going to find the right home for you, it could even be on your first day out looking…you don’t want to lose out because your financing isn’t ready!
THINGS NEEDED AT LOAN APPLICATION
- Home addresses for the past two years
- Employment information for the past two years
- Income information including salary, overtime, bonuses, commissions, dividends interest, retirement and any other source of ongoing income
- Social security number to run credit history
- Last 2 years W-2 forms, tax returns
- Current pay stubs
- Bank account statements for the last 3 months
- Source of down payment
- Child support/child care
- Divorce decree
- Lease agreements/rent
- Mortgages and account numbers
- Real estate owned
Not all these things will apply in all circumstances, and your lender may ask for additional items depending on your situation.
