Planning Ahead for the Perfect Mortgage Application
Preparing in advance will save you time and trouble once you’ve started making offers.
Income: Provide your last two pay stubs along with your W2s and Federal tax returns for the last two years (include all schedules). State returns are not needed. If you are self-employed, ask me for the additional documentation requirements. If you receive bonus or commissions or have changed your job or position, let’s talk.
Assets: Combine all the funds needed to close into one account at least two months prior to your application. Be sure to document any other deposits here as each could be scrutinized.
Your Statements: Save all pages of your asset statements, even if some are blank or are just advertisements.
Deposits: Make copies of checks and deposit slips to prove they are not borrowed money. Deposit checks individually. Don’t deposit cash without clear proof of the source.
Liquidation: If you are going to sell stocks, bonds, investments or borrow against a retirement account do it now. Cashing out now may cost you a few dollars in additional gains, but it also protects against losses.
Current Housing: If you own and are selling, provide a copy of the Closing Disclosure or settlement statement. If you own and are not selling, you’ll need to qualify for both homes or meet the requirements for renting the current. If you are renting show 12 months of canceled checks demonstrating timely payments and/or written verification from your management company. Ideally, pay your rent on the same say each month on or prior to its due date. If you live with family, you may need a letter stating that you live rent-free.