Preparing in Advance Will Save You Time and Trouble Once You’ve Started Making Offers.
INCOME
Provide Your Last two paystubs along with your W2s and Federal tax returns for the last two years (include all schedules). State returns are not needed. If you are self-employed, ask me for the additional documentation requirements. If you receive a bonus or commission or have changed your job or position, let’s talk.
ASSETS
Combine all the funds needed to close into one account at least two months prior to your mortgage application. Be sure to document any other deposits here as each could be scrutinized.
Your Statements
Save all pages of your asset statements, even if some are blank or are just advertisements.
Deposits
Make copies of checks and deposit slips to prove they are not borrowed money. Deposit checks individually. Don’t deposit cash without clear proof of the source.
Liquidation
If you are going to sell stocks, bonds, investments, or borrow against a retirement account, do it now. Cashing out now may cost you a few dollars in additional gains, but it also protects against losses.
Current Housing
- If you have sold recently or will be selling a current residence, provide a copy of the HUD-1 or Closing Disclosure/Settlement Statement.
- If you own and are not selling, you’ll need to qualify for both homes or meet the requirements for renting the current
- If you are renting, show 12 months of canceled checks demonstration timely payments and/or written verification from your management company. Ideally, pay your rent on the same day each month on or prior to its due date.
- If you live with family, you may need a letter stating that you live rent-free
CREDIT
Check your credit reports Identify any erroneous info now and consult with us for the correct action to take. If you co-signed a loan or are being reimbursed for a loan that’s in your name, you’ll need at least six months of checks to exclude it. Avoid new credit or inquiries. These can lower your score and increase your rate.
EMPLOYMENT STABILITY
Ideally, you’ll have two years or more with your current employer. Consult with us before changing employers, position or method of compensation. For example, don’t switch from salary to commissions.
