Helpful Information

What to expect when applying for a mortgage

Here are 6 things to expect when applying for a mortgage now:

1. Be prepared to document your income. Lenders require at least 30 days worth of pay-stubs for all borrowers. Lenders will also need your last two years’ w-2 forms. During the process, keep all paystubs in a “Mortgage Processing” folder.

2. Be prepared to document your assets. You’ll need required bank statements. Get ready to explain any unusually large deposits. You’ll need quarterly statements from retirement accounts.

3. Self-employed? Get two full years of tax returns and a year to date profit and loss ready.

4. Check your credit. Statistics show that 7 out of 10 credit reports have incorrect or inaccurate information that is having a significant impact on your scores. Know your scores and what your credit report reveals about you. Remove outdated and inaccurate information.

5. Expect to write letters of explanation. These have proven to be frustrating to many borrowers. They are required, so expect them. If you bounced a check to your local grocery store and you have an “insufficient funds” comment on your bank account, expect to write an explanation letter. If you changed jobs or careers in the last two years, expect to write an explanation.

6. Pack your patience. Applying for a mortgage can be a time consuming process if you’re not prepared. Expect about a 20-30 day, or even longer, closing schedule. Be prepared. Be responsive to your lender when asked for documentation.

Put yourself in the place of the lender. If you were to loan someone $150,000, you’d want to have a pretty good idea that your borrower was going to pay you back right? You’d want the home to actually be worth what you’re paying for it and you’d want to know you had a clear title on the property. The lenders want the same assurance. It’s back to the way it was and the way it should have been all along. Prepare, expect, and respond and the process will go fine.


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Equal Opportunity Lender. We Do Business in Accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

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