One of the best ways to make sure your application for a mortgage goes smoothly and quickly is to have as much of the information that the bank is going to need ready ahead of time. The application process will be easier for the lender and faster for you; if you are at all hoping for a fast approval of your mortgage, it is well worth your while to take the trouble to gather all the documents ahead of time.
Following is a list of the paperwork that a lender will usually request when you are applying for a home loan. These are listed in no particular order.
-Your fixed expenses: Whatever routine bills you have every month, such as your present rent or mortgage payment, student loans, credit card payments and child support, if applicable, along with the contact information for each of them.
-List of assets: Your bank and brokerage accounts, any property owned, retirement and pension accounts, including account numbers and names of institutions. You should also have a list of make and model of all vehicles. For any businesses you may have an interest in, give a copy of the tax return. If you have any real estate investments, you will be asked to show how much you receive in rent, and the assessed value of the property.
-For anyone who has been divorced, you should make available a copy of the divorce decree.
-Two years of employment history, with the names, addresses and telephone numbers of employers, including dates of employment.
-Copies of the last two year’s W-2 statements and most recent pay stubs. These are used to officially verify your income to the bank. In the case of self employed people, you should have ready the last two year’s personal and business tax returns, as well as the business’s financial statements. In the case of retired individuals, present a copy of your award letter from the SSA and copies of any retirement and pension checks you get, or the bank statement in the case of direct deposit.
-All of your previous addresses for two years.
-Signed purchase contract, if you have already made an offer on a home (or builder’s contract if it is a new home), and full description of home. -For a refinancing loan, you will need copies of your homeowners insurance and the title insurance policies.
Giving all of this documentation to your prospective lender at the very beginning will get the wheels turning for your application, instead of them calling you and asking for documents one at a time, which will really delay the process.
Find other benefits at assurance hypotheque and assurance hypothecaire