Starting with an initial interview where the prospective
homebuyer and the mortgage lender meet to discuss the potential loan, the
mortgage loan approval process generally begins. In order to verify your income
and long-term debts, you will require bringing information.
Meeting with the mortgage lender before house hunting to
determine the price range that they can realistically afford and the amount to
qualify for the mortgage is preferred by most of the people. Called as
pre-qualification, this step can save you much time and trouble by making
certain you are looking in the correct price range.
You should bring the following for your first meeting with a
mortgage lender:
- A
purchase contract for the house (if you have one)
- Your
bank account numbers and the address of your bank branch, together with
checking and savings account statements for the previous 2-3 months
- Pay
stubs, W-2 withholding forms, tax returns for last two years, or other
proof of employment and income verification [divorce settlement papers, if
applicable]
- Credit
card bills for the past few billing periods, or canceled checks for rent
or utility bill payments, to show payment history and amount of revolving
debt; and information on other debt, such as car loans, furniture loans,
and student loans
- If you
are self-employed, balance sheets and tax returns
- Any
gift letters, if you are using a gift from a parent or relative or other
organization to help pay the down payment and/or closing costs. This
letter simply states that the money is in fact a gift and will not have to
be repaid.
When you visit the mortgage lender's office having these
items on hand, it will help accelerate the application process. Usually, when
you submit the mortgage application, an application fee and the appraisal fee
will have to be paid.
This is only done after you have effectively negotiated
on a home and have had your offer accepted by the seller. Generally, for
pre-qualification, there is no fee.
You should have a general idea after the initial meeting
with the lender if you qualify for the size and type of loan you want. If you
qualify for the loan, the mortgage lender should let you know.
If you are
denied a home loan, the mortgage lender must explain the reasons. If this
happens, the lender will usually discuss any options with you. Generally, 1-6
weeks is, the time taken for the application process.
Related Articles:
|
