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Get Organized Before Applying For A Mortgage

To all home buyers, the advice offered below from George Souto should be taken to heart.  Loan underwriters are becoming increasingly stringent in deciding who they will and will not approve for a mortgage.  Be sure that your financial records are in tip top shape before you apply for a mortgage, or you could very well become the cause for a delay in your home closing.

What should be one of the simplest steps in purchasing a house sometimes turns into one of the biggest problems.  When I Pre-Qualify someone for a loan, I tell them that they need to start organizing the documents that they will need, especially if they plan on purchasing soon.  I then go over the list of documents that they will need for the type of loan that they will most likely be applying for.  Some documents may differ based on the Loan Program, but there are some documents that are needed regardless of the Loan Program, such as:

 

  • One month of paystubs
  • W2’s for the past two years
  • Bank statements, 1 month for conventional loans, and 2 months for FHA

As simple as these documents may seem, they can create delays when a Borrower does not listen to my advice, and does not start to comply them right away. 

 

I am always amazed at how many people do not keep their paystubs and bank statements.  Bank statements we can get around by just having the Borrower go to their bank and getting a bank printout of their account, but paystubs are a different matter.  If they do not keep their paystubs, and cannot get duplicate ones from work, then we may end up having to wait a full 30 days for them to acquire them.  That may not be a major issue for someone who has plenty of time to Close, but for someone who has to Close quickly, that could be a big problem.  W2’s can also create delays if we have to wait for duplicates from work, or for the Borrower to get them from their accountant, or IRS.

 

Other documents that are commonly needed with some loan programs that Borrowers don’t always have handy, and could slow down the loan approval process down are:

 

  • 2-3 years Tax Returns needed for:
    • Self-Employed Borrowers
    • CHFA Loans
  • Gift money documentation:
    • Copy of Gift Check
    • Proof of withdrawal
    • Proof of deposit
  • Divorce Decree:
    • Proof of receipt of Alimony/Child Support payments
  • Bankruptcy documentation
  • Certificate of Eligibility (VA Loans)

There are other documents that are sometimes needed, but these are the most common.

 

Buying a house can be a very stressful process, but much of the stress can be eliminated if the Borrower follows the advice of the Real Estate professionals that they are working with.  A little time spent on preparation and planning, can sometimes save many hours of delays, and stress during the Home Purchasing Process.

 

 

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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage. 

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Text and photos copyright Kathryn J. Acciari unless otherwise noted. 
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Kathryn Acciari, Brand Ambassador

Century 21 Real Estate LLC
175 Park Avenue
Madison NJ 07940

Serving Brokers, Owners, and Agents Throughout New England

Cell: (508) 982-0686   
Email:
kasellshomes@gmail.com

Blog: Real Estate Blog
Twitter: @kacciari

Comment balloon 3 commentsKathryn Acciari • August 30 2011 08:46AM

Comments

Great info on what to gather. You would be surprised to hear how many poeple dont think about this when they decide to buy a home and then are delayed in the process because they were not prepared.

Posted by Linda Edelwich, Glastonbury Office's #1 Top Producing Agent-not on (William Raveis Real Estate) about 8 years ago

Linda:  Yes, or they expect that their banks will organize the information for them.  It is all the buyer's responsibility to have their financial resume ready for quick review.

Posted by Kathryn Acciari, Brand Ambassador and Business Coach (Century 21 Real Estate) about 8 years ago

This is good advice.. There are a couple of things on your list I need to add to mine. Thank you.

Posted by Terri Poehler, Coral Springs Real Estate Agent (Realtor) about 8 years ago

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