Papers That A Mortgage Lender Will Require you To Present
Before you meet your potential mortgage lender, you need to prepare a copy of your credit report and scrutinize it. You can get a free annual credit report from credit reporting agencies. In case you find erroneous information or entries in your credit report, report it to the creditor to correct it. Take a look for delinquencies. If your report contains too many late payments, your FICO score will be negatively influenced.
Don be disheartened if you happen to have a low FICO score because you can still acquire a FHA loan. FHA loan do not depend on FICO scores. It only necessitates down payments that cost 2.85% of the property's selling price.
To start processing your home loan, a mortgagee will authenticate your employment through a verification of employment form. Let you employer know about your application for home loan so they will not be surprised when they receive that from. Then, ask your human resource officer to send it back immediately. Furthermore, the lender will expect you to provide them the following paperwork:
Current Pay Stubs
Your pay stubs is the best proof of your income. Provide the lender with the latest pay stubs available. Actually, you last two pay rolls will be enough. Provide them a duplicate copy of your pay stub and do not give them the original copies.
Wage And Tax Statement
Wage and tax statement is provided by your employer for a calendar year. This is where your tax returns are attached to. In case you haven't filed your tax returns yet for the last year, then you can provide them at least two previous years of tax returns.
Provide your lenders at least three months of your latest bank statements. If your bank statement contains a huge amount of money, the lender will surely ask you how you were able to raise such an amount of fund and ask proof substantiating that it is not a loan. This guarantees your lender that you really have the financial capability to pay your down payment and closing costs.
Copy Of Your Present Driver's License
If you will be meeting the mortgagee in person, you need to bring with you your driver's license for identification. If not, reproduce your license on a scanner or copy machine and attach it in your documents. Your license must have a photo of you.
Inquire About Upfront Costs
Most lenders request a payment for credit report, but some do not charge any fee. Normally, appraisal and credit report fees are paid beforehand when you are set to accept the loan.