When you need a home mortgage, being prepared in advance will make the application process much smoother for both you and your lender.
What to prepare ahead of time
- Clean-up your credit history – Try to improve your credit score as much as possible before applying for a home loan. Even a little goes a long way.
- Keep a steady income – It’s promising to see that you’ve had a steady income and have maintained employment for several years. This gives your lender security in knowing you can make monthly mortgage payments.
- Pay off all bills and loans – Paying your outstanding debt will show that you don’t have any other large financial obligations that may interfere with paying your mortgage. Obtaining pay-off letters from your credit card companies can prove that any outstanding debt has been paid.
When you have everything in order, meeting with your lender is your next step. Be prepared to bring certain information and paperwork with you.
What your lender will need:
- Information about the property – What type of property you’re looking to buy and what it will be used for.
- What type of mortgage you’re looking for – How much money you’re looking to borrow, what time-frame you need to pay it, and what type of down-payment you can make.
- Income information – Proof of monthly income. You will need recent pay-stubs, at least two years of W2 forms and tax returns.
- Asset information – At least 2 months worth of bank statements, statements of stocks, bonds and mutual funds.
- Credit information – You will need to inform your lender of any creditors you still owe and will need to go over your credit history.
- Personal information – Your driver’s license, social security number, birth certificate, marital status, current address and number of dependents.
Applying for a home mortgage shouldn’t be intimidating if you’re prepared. Please contact us today with any questions you have or if you would like more information about applying for a home mortgage.