Be prepared to provide some or all of these items to your loan officer.
Addresses of residences for the last two years
Social Security Number
Driver’s License or Valid ID
Names and addresses of employers for last two years
Two recent pay stubs showing year-to-date earnings
Federal tax returns for last two years
W-2’s for last two years
Last two months statements for all checking and savings accounts
Loans: Names, addresses, account numbers, and payment amounts on all loans
Real estate loans: Names, addresses, account numbers, and payment amounts on all loans for other real estate you own
Credit Cards: Names, addresses, account numbers, and payment amounts on all credit cards
Addresses and values of other real estate owned
Value of personal property. Your best estimate of the value of all your personal property (autos, boats, furniture, jewelry, television, stereo, computer, other electronics, etc.)
For a VA loan, Certificate of Eligibility or DD214s
Divorce decree if applicable
Funds to pay upfront for the credit report and appraisal
WHEN AND WHERE TO APPLY FOR A LOAN?
There are many sources for home loans including banks, credit unions, mortgage companies, and mortgage brokers. I can provide you with several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it’s probably a good idea to know what you can afford before you begin looking for your new home. It can give you more bargaining power when negotiating with a Seller, especially in today’s market. A lender can prequalify you for a certain price range and help you avoid disappointment later.
YOUR LENDER WILL MAIL OUT VERIFICATION REQUESTS and order an appraisal on the property you are buying. If your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval.
WHAT IS HAZARD (OR FIRE) INSURANCE?
Hazard insurance covers the dwelling itself and is required by the lender to protect their “risk” in your home. Your lender will explain the necessary hazard insurance coverage to you. If you are buying a condominium, a master policy already exists which includes your unit, but it does not cover your personal belongings, which means you will need to provide insurance through your own carrier.
CONTACT YOUR INSURANCE AGENT EARLY IN THE PROCESS, because this coverage must be provided so the lender can release loan funds to your title company. Hazard insurance is one of the items frequently postponed until the last minute, and this can result in delaying the closing for a day or more. Order your insurance as soon as your loan is approved; then furnish your escrow officer with the agent’s name and phone number.
WHAT HAPPENS AFTER LOAN APPROVAL?
After loan approval and just prior to your planned closing date, the lender will send loan documents to your title company, and your escrow officer will prepare an estimated settlement statement. This statement indicates what funds go where, and at this time your escrow officer can tell you how much money you need to bring o the closing appointment. Be aware that this amount may be higher or lower than previously estimated due to charnges in such items as prepaid interest, prorated fees, courier fees, and impound accounts.