Initiating The Mortgage

Once we have your desired home under contract, we will need to initiate the loan mortgage process. This might seem daunting but if you have a good loan officer and lender, they can simplify the process and step you through it with minimal stress. The process will be even easier if you know what to expect and are prepared for it on the front end.

Here are the high-level loan application steps:

1. Be prepared with these required documents in advance:
• Two years of employment history; current employment status and salary are needed. Employment letters can be used to explain gaps in employment.
• Two years of W-2s (this does not apply if self-employed) and tax returns allow the lender to be sure that your salary is high enough to make the mortgage payments every month.
• Most recent pay stubs for the last 30 days tell the lender that you’re still earning money similar to the amount on your tax returns. (This does not apply if self-employed, but the lender will likely require a profit and loss statement.)
• Bank statements from the last 2 months.  This lets the lender know you have the money to cover the down payment, closing costs and a reasonable emergency.
• Complete 401(k) and IRA statements
2. Submit the application. Once you’ve prepared the required documents, the first step with the lender is to apply for the home loan. Of course, you will need to provide personal information, as well as information about the property you’ll be purchasing, such as the address and purchase price.
3. Provide all of the lender required documents such as those mentioned above like pay stubs, W-2s, tax returns, bank statements and employment history to the loan officer.
4. Once the home is under contract, we’ll need to provide a copy of the fully executed contract and you’ll want to speak to the loan officer about the optimal time to lock in your interest rate.  Follow their lead as they are the expert in this area.

Individual financial circumstances can be varied and quite different for all of us — self employment, divorce situations, military, investment properties, past bankruptcy, etc. – are just a small sampling of the many diverse scenarios that can impact your financial situation.  Thus, work closely with the loan officer to determine what your individual financial picture requires to successfully complete the mortgage process.