Before you start shopping for your property, it is a good idea to make some preparations.

Get Pre-Approved

Mortgage Application Checklist

Before you go out and look at dozens of homes, you need to get preapproval from a lender. The worst possible situation is to find your dream home, but find out later that you can’t get qualified to buy it. 

Your agent can recommend specific lenders to contact that have a proven track record of successfully closing deals.

1. Choose a lender with local representatives and offices. Face to face meetings with your loan officer are highly recommended.
2. Get 2 or 3 different quotes from lenders.  Talk to the lender about how long you plan to be in the home as they may have different loan products to meet your needs.

All lenders differ on what they need from their borrowers. This list is intended to give you a general idea of what will be required at the time of mortgage application. Please check with your lender for a complete list of necessary information.

1. Social Security Number and Birth Date – Required of you and any co-borrowers
2. Paycheck – Your most recent pay stub showing year-to-date earnings
3. W-2 Tax Forms – The lender will require 2 years W-2’s and accompanying tax forms
4. Employers – The names, addresses, and telephone numbers of your employers for the past two years
5. Accounts – You will need the account numbers and current balances of your checking account, savings account, money market account or any other accounts you may have
6. Current Assets – Current assets such as IRA’s, CD’s, stocks, bonds or securities. Your lender may require a current brokerage statement with name of the stock, amount per share and number of shares owned.
7. Personal Property – Value of personal property including life insurance face value, employee retirement accounts, furniture, cars, jewelry, coins, and other valuable property
8. Liabilities – For each loan, provide the lender with the name and address of each creditor and include both the monthly payment and total amount due. Liabilities will include auto loans, student loans, credit cards and other installment debt.
9. Current and Previous Addresses – If you own a home you will need the property address, current market value, mortgage lender name, account number, current monthly mortgage payment and outstanding balance. If you rent, you will need the property address, name and address of the landlord, the current monthly rent, and previous address/landlord. You will need information about your former addresses if you’ve lived in your current address for less that two years.
10. Sales Contract – Bring along a signed copy of that agreement and any amendments to it, a copy of the listing form for the property you wish to purchase and the legal description of the property.

Special Situations

1. Self employed or commissioned – bring federal tax forms for the past two years along with a current year-to-date profit and loss statement
2. Separated or divorced – Bring a copy of your divorce decree and separation agreement. If you are receiving alimony or child support and you want it to be considered as income, you’ll need proof of this income (cancelled checks for the past 12 months, for example)
3. Applying for a VA loan – Bring your DD214

Be Careful With Your Finances.

Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.

Resources

DOWNLOAD MOVING CHECKLIST  DOWNLOAD BUYER's PACKAGE