Recently, we talked about the third step in the home purchase process: finding your home. Once you have found a home you want to buy, the next step is to apply for your home loan. This is the time to assemble and submit all of your financial information and documentation to your lender for evaluation. Your Mortgage Loan Originator will help you figure out what documentation you need to provide, and ask you questions about your financing, so that you can submit the best possible loan application.
Ensuring a Successful Loan Application Once it’s time to apply for your loan, your Mortgage Loan Originator will request the following from you:
Proof of employment (written verification documenting a full two years of work)
Proof of income (pay stubs for the past 30–60 days)
Proof of income from another source (if applicable, applicant must submit three years’ documentation of social security, disability, pension income, alimony, or child support)
W-2 forms and tax returns from the past two years
All current mortgage information (if applicable)
Bank information (account numbers, branch address, and bank statements from the past 2–3 years)
Information about purchase contract (if completed), real estate certification, amendatory clause or deposit, and proof of rent/payment history on past or present mortgages)
Jennifer Cook, an NFM Lending Branch Manager in Louisiana, says that the most important thing to remember when applying for a mortgage loan is to be completely honest with your Mortgage Loan Originator.
“Things like child support, side business income or loss, etc., that are not disclosed upfront can create issues down the road. It is critical to provide all requested documentation in a timely fashion at application.”
Navigating the Loan Application Process The process of applying for a loan may seem complex and even overwhelming. According to Jennifer, one of the keys to a successful loan application is to work with reliable professionals that you trust.
“Make sure you are working with a lender and a real estate agent who you know and trust. Many people are seduced by super low rates advertised online, but when it comes down to it, a loan originator who gets all their leads via the internet or an 800 # doesn’t really care if you settle or not. They have no relationship with you personally or your agent.”
Working with knowledgeable real estate and mortgage professionals will help you greatly during the home purchase process. Your Mortgage Loan Originator can help you navigate what may seem like a confusing process, and help you make sure your loan has the best possible chance of being approved.