First avoid mortgage sabotage: homeowners are often not aware of how an innocent transaction such as moving cash from one bank to another can create a major problem for their mortgage application process. Become a paper hound, save bank statements and pay stubs from now until closing. Do not pack away financial papers, keep your tax returns, W-2’s and other financial papers from the last two years in a handy place. Don’t move cash around, moving assets can create a paper trail nightmare. The best advice is to leave everything where it is until accounts can be verified. We have to verify all sources of funds for the transaction, so keep or make copies of any documents associated with large deposits and documents associated with the selling of any asset. Don’t apply for new credit, the assumption will be that if you’ve applied, you’ve created new debt. If you plan on paying off debt, hold off until you’ve spoken to your loan officer or processor.
For the application plan on bringing or sending the following:
1. Verification of income: copies of tax returns, W-2’s, pay stubs.
2. Verification of assets: most recent copies of bank statements, savings account statements, retirement, stock account statements.
3. Information for other properties owned: i.e. mortgage statements, tax information, homeowners insurance
4. Drivers license, photo ID, alien registration card(if applicable).
Other items may be required depending on your current or past financial situation.
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