The big day has finally come; you’ve decided that you’re ready to purchase your first home! Your initial feeling of excitement likely is preceded by an overwhelming feeling of stress. Not to worry—the folks at NFM Lending have got you covered.
There are two main ways you can go about applying for a loan. You can apply for pre-approval of a loan to help determine what you can afford to borrow (please note that pre-approval is not guaranteed). Also, you can officially apply for a loan after you find the property of your dreams. The first steps to applying for a loan are quite simple.
When you are ready to apply you need to submit information about all of the applicants (for instance you and your spouse). Make sure that you are prepared to give your Mortgage Loan Originator the following information: names, social security numbers, and the monthly income of all the applicants. You also need to submit the subject property address, and the estimated value of the property being bought. The amount of the loan and the down payment are determined during the application process. Your lender will determine if you are able to qualify for that loan amount.
Your Mortgage Loan Orignator will take your application and collect items needed for review.
Here is what you should get together to apply:
- Proof of current income (most recent 30 days of pay-stubs/ recent awards letters for SS, Pensions, Retirement. If collecting child support or alimony a copy of the separation papers along with evidence that the support has been received for the last 12 months).
- W-2 for the past two years (self employed / commission earners will need copies of their 1040’s for the last two filed tax years).
- All current mortgage information and a copy of the original note if refinancing.
- Evidence of assets: Bank Statements for most recent 2 months preceding the application, copy of the cancelled earnest money deposit check (purchase only).
- Copy of the purchase contract (if completed).
Your Mortgage Loan Originator will put all of these items together, order a title, and help schedule an appraiser to determine the value of the property. After this, they send your application to underwriting. An underwriter will determine whether or not you qualify for a loan.
Your dream of owning a home is not too far away. Make sure that you have all of the items listed in this article. The more organized you are, the easier the loan process may be for you. If you are considering getting your loan process started we wish you the best of luck!
If you would like to talk to one of our Licensed Mortgage Loan Originators about applying for a loan, please click here.