What Information and Documents Are Needed To Apply For Home Mortgage Loan?

If you are applying for a home mortgage loan, a real estate agent will give you a checklist of information and documents to be submitted to start the mortgage loan processing. The checklist will normally contains the following:

1. Personal information on the borrower(s)

1.1. First name, second name and last name

1.2. Social security number

1.3. Driver's license number, if any

1.4. Date of birth

1.5. Home address and length of stay (in years and months). If you are renting, the name, address, and telephone number of the landlord and the copy of the lease

1.6. Mailing address, if different from the home address

1.7. Telephone number

1.8. Fax number, if any

1.9. Email address, if any

2. Regular employment

2.1. Previous 2 months of pay stubs showing year-to-date gross salary

2.2. Employment certification from employer(s) for the last 2 years

2.3. Bank checking and/or savings statements for the last 3 months

2.4. Income tax returns, with supporting income documents (such as IRS Form W-2, IRS Form 1099, etc.) for the last 2 years

3. Self-employment

3.1. Bank checking and/or savings statements for the last 3 months

3.2. Income tax returns, with supporting income documents (such as IRS Form 1099) for the last 2 years

3.3. Profit or Loss Statement for the last 2 years plus the current year

3.4. Recent copy of business permit

4. Personal loans and credit cards

4.1. Copies of different personal loan (example: bank loan, auto loan, student loan) and credit card statements showing the name of creditor, address, telephone number, account number, type of loan, principal balance, interest rate, and monthly payments.

5. Mortgage loans

5.1. Name, address, and telephone number of mortgage lender

5.2. Copy of the mortgage loan or deed of trust

5.3. Name and address of the borrower(s)

5.4. Address and market value of the real estate property

5.5. Recent copy of the mortgage loan statement showing the mortgage principal balance, interest rate, and monthly payment

6. Sources of money for down payment

6.1. From savings, inheritance, gifts from parents/relatives, sale of personal assets, and other sources

7. If you filed for bankruptcy for the last 7 years

7.1. Copy of the bankruptcy petition and court discharge

8. Information on the property you are trying to buy

8.1. Type of home (single home, condominium or townhouse, cooperative apartment)

8.2. Name, address, and telephone number of the property owner

8.3. Selling price for the property

TIPS

1. Verify first your credit score. A mortgage lender will charge you a higher mortgage loan interest rate if you have a low credit score (example: below 750). A lower interest rate may be given to you if you have a higher credit score.

2. Do not pay any upfront application or other fees when you apply for a mortgage loan. If the real estate agent insists on an application fee, you better run and look for another agent.

3. Shop for at least 3 real estate agents and compare the estimated mortgage loan amount and fees.

4. Try to get a free mortgage loan pre-approval from your bank or credit union.

5. If you are ready to buy a home, become a member of a credit union. A credit union usually offers lower mortgage interest rate. In addition, a credit union member receives quarterly dividends on his/her savings account.

IMPORTANT ADVICE: Buy your home which you can afford to pay. According to some financial experts, the monthly payments for your home must NOT EXCEED 35% of your monthly gross income. If your combined monthly gross income is $4,000, you can spend up to $1,400 for your home payments and real estate taxes.

Happy house hunting and good luck!

Come back soon for more interesting articles. Thank you for visiting my blog and God bless you.

Read Other Article:

My Experience: Buy First Home Or Rent