What Info Is Needed When Filling Out a Loan Application

What information will be needed when Buyer's are applying for a loan

Here is a list of the information mortgage lenders will use to consider your loan application.

For all loans

Social Security Number, for borrower and co-borrower if any

Employment History

For the last two years, employment dates, addresses, salary.

Current pay stubs or W-2 forms.

 

Check and Savings Accounts and Certificates of Deposit

Location of bank accounts, account numbers and balances;

Address of bank if out of town

Last 3 months' statements

 

Stocks, Bonds, and Investment Accounts

Broker's name and address, description of stocks, bonds, etc.

Last 3 months' statements or copies of stock certificates

 

Life Insurance Policies

Insurance company, policy number, face amount, cash value, if any

 

Retirement Plan

Approximate vested interest value

Copy of latest statement

 

Automobiles

Make and model of automobiles, their resale value

 

Other Assets

Market value of personal and household property

 

Liabilities and Other Non-Mortgage Debt

Creditors names, addresses, account numbers

Monthly payments and balances

 

Other income information you may need

 

If you're self-employed

Two years tax returns, profit and loss statements, both company and personal if separate.

Current balance sheet and profit and loss statement if more than two months into the new fiscal year, signed by CPA.

 

If you have income from:

Commission

Overtime

Bonus

Partnership

Rental Property

Trust

Notes Receivable

Interest/Dividends

You'll need two years' personal federal tax returns

 

If employed in family business

Personal federal income tax returns and all schedules for the past two years

 

If divorced or separated

Complete executed divorce decree and settlement agreement

Payment history of alimony/child support over the past 12 months, if it is a financial obligation.

If you choose to have this be considered as part of your income (you don't have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.

 

If you own real estate

Name and address of all mortgage lenders for the past 24 months, account numbers, monthly payments and balances

If you've sold your home but not closed:

A copy of the sales contract

If you've sold your home, closed, and you will use the proceeds for your new down payment:

A copy of the HUD-1 Uniform Settlement Statement

 

If you rent 

Name, address and phone number of landlords for the past 24 months

 

If you're buying a home 

Purchase sales contract or offer to purchase and all addenda

Furnish contract with original signatures of buyer and seller

 

If a source of your down payment is a gift:

Name, address and relationship of donor.

Gift funds will be verified in both the donor and recipient's accounts.

Note: Not all loan programs allow gifts to be part of your down payment.

 

For FHA Financing

Evidence of Social Security Number and photo identification

 

For VA Financing

DD214 and Certificate of Eligibility

 

For Construction/Perm Loan

Signed construction with cost breakdown, builder plan and specifications

Happy House Hunting!

 

 

The First Steps Series-Get Pre-Approved

Get Pre-approved for a Loan

Very few people buy a home with cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that most all buyers -- especially first-time purchasers -- require a loan.

When it comes to financing, the real issue is not getting a loan (anyone willing to pay higher interest rates can find a mortgage), but getting the loan that provides a mortgage with the lowest cost and best terms.

Agents suggest that serious buyers start the mortgage process well before bidding on a home. By meeting with lenders and looking at loan options, you will find which programs best meet your needs and how much you can afford.

REALTORS® also recommend pre-approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

A pre-approval letter, unlike a pre-qualification letter, involves verification of your financial information. The lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances. Granted, a pre-approval is more time-consuming (and possibly more stressful) than a pre-qualification. The additional due diligence is exactly why the pre-approval carries more weight and shows your borrowing power.  You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. You'll have more leverage in negotiations with the seller. Sellers often prefer to negotiate with pre-approved buyers because the sellers know such buyers are financially qualified to obtain the financing they need to close the transaction. A pre-approval letter is an especially favorable point in situation where the seller is presented multiple offers.

Keep in mind, pre-approval letters aren't binding on the lender, are subject to an appraisal of the home you want to purchase and are time-sensitive. If your financial situation changes (e.g., you lose your job, lease a car or run up credit-card bills), interest rates rise or a specified expiration date passes, the lender will review your situation and recalculate your maximum mortgage amount accordingly.

 

How do you get pre-approval?

Real estate financing can be obtained from a number of sources, including banks, savings and loan, credit unions, mortgage companies, various government lenders and in some cases, individual REALTORS® themselves. Talk with several lenders before you decide. Your real estate broker will be familiar with lenders in the area and what they are offering. With their experience they can usually suggest lenders that have a variety of programs and competitive rates.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs.

This is also an opportunity to ask your lender about the following programs:

·      Government Loan Programs: FHA and VA offer loan programs particularly beneficial to low-and moderate-income individuals.

·      State and Local Housing Programs: Potential home buyers can familiarize themselves with a variety of state and local housing programs that offer additional benefits in their local area

           

For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.