How to Prepare Your Paper Work When Applying for a Mortgage

So you’ve decided to apply for a Mortgage loan. Whether you need some dough to pump up your online business or just to get that glossy red car like the one on the next block, Mortgage loan is ideal for you. As much as it sounds interesting, applying has proved to be not an easy process though. But you still intend to apply for one, don’t you? So for a smarter and faster application for your mortgage loan, you should consider preparing the following paper works:

Good Credit History—in almost all loans, a credit history is necessary. And for you to have a good one, you should practice a good banking and spending techniques. Continuous employment (at least 2 years), an established savings and checking account, good payment history using personal checks, no history of past due monthly bills and pay stubs will serve as bases for your credit history performance. By making sure that you have all these things in regular check, you can have a good credit history to back you up anytime.

Bank Statements—you will be required to submit two current monthly checking account statements together with your passbook saving accounts. This will show the latest activities for the two (2) recent months. Explanation in writing is required for deposits seen as unusually high. Bill of sale of a personal property, gift or any kind of refund is accepted as valid sources. Gifts must be given in the form of checks and gift letter furnished by the giver should be produced, and then attached to the passbook or statement’s copy showing the gift deposited.

Tax Returns—information in the W-2 form should match the ones in the application.

Verifications—verification of employment or VOE is accomplished by the employer and is send back directly to the lender. VOE is required from the previous employer if you’re working below 2 years for your current employer. For individuals who don’t have previous employers, a valid explanation is required.  Moreover, you will be required to show your average monthly balance of the most recent two months and your balance for the current month, which is called Verification of deposit. You are allowed to send faxed copies, provided that you send by mail or deliver personally the originals afterward.

Credit Report—the lender will spare a copy of your handwritten application and will be sent to the credit report company. Information verification will be done. The lender will received a copy of the credit copy report. A copy will be sent also to you should there are issues in the information provided.

Explanation Letters—you are required to submit a letter explaining adverse credit info—like late payments, queries from creditors in recent months & etc. Divorce, Illnesses or errors on the part of the creditors are considered acceptable. You should be able to prove that you are not negligent.

Document Updates—you are required to update some of the documents submitted should the loan processing goes beyond allowed 90 days.

Producing the necessary documents is a real hassle if you don’t do it ahead of time. The above papers should be prepared if you’re planning to take a mortgage loan. Once you already have them, find the right mortgage loan you think is suitable for you. And that is another interesting homework for you.


One Response to “How to Prepare Your Paper Work When Applying for a Mortgage”

  1. I would like to say thank you such a lot of for your job you have made in writing this posting. I am hoping the same top job by you later on also.

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