Have the following ready and on hand for a quick and easy home loan approval:
First, figure out what kind of mortgage company will work best for you. Is it the bank in your neighbourhood or a mortgage broker? The main difference between the two is that each may have a different set of programmes and "qualifying" standards. Your local bank may be the best option for you because they already know everything about you and the paperwork will be less "dramatic." But some banks have stricter rules about who can get a home loan (based on income, credit score, debt-to-income ratio, etc.), which could be hard for some people to meet. A mortgage broker can give you more "wiggle room" with your credit, income, down payment (if you're buying a home), etc. They usually work on their own and have access to hundreds of lenders so they can find a loan that fits your needs. Mortgage brokers charge a fee for this service, which is usually added to your loan. However, if you use this service, your chances of getting approved and getting a good interest rate go up.
Now you know which route is best for you. Next, you'll need to gather these things:
- All income, including W2s from the last two years, the last month's pay stub, tax returns, and any other proof of income (i.e. regular income from capital gains, income from commissions and so on.) If you want to count child support or alimony as income, you should have proof.
All assets, including the last two months' worth of bank statements, the most recent 401(k) statement, and statements for mutual funds, stocks, bonds, etc. Keep a copy of the HUD1 settlement statement if you sold your home. (You can find and print many of these statements on the internet.)
- I saved the easiest thing for last: a copy of your driver's licence and social security card.
- If you rent, try to have 12 months of rent receipts and information about your landlord so that you can prove that you pay rent. Be ready to explain why your credit report shows late payments, judgments, credit inquiries in the last 3 months, charge-offs, collections, or liens. If you went bankrupt in the last 7 years, you should have your discharge papers ready.
- If you want to buy a house, make sure you have a copy of the purchase agreement (if you've already signed it). If you want to refinance, make sure you have a copy of your most recent mortgage bill statement.
Keep in mind that you don't have to have all of this when you fill out or apply for a job. BUT, it is a good idea to get it together and have it handy until then! It will save you a lot of trouble and make the closing QUICK & EASY!
