For many buyers, applying for the mortgage loan is one of the most stressful and confusing aspects of buying a home. The loan application process should not become a stressful time. By following a few easy steps, you’ll sail through the loan application process with no major problems. It is important to ask your Realtor for a list of his/her preferred lenders, which most likely will make the process less stressful. Establishing a good relationship with the professionals involved in the home buying process is the key to help every transaction to go smooth. it will also help the buyer to achieve his/her desired goals.
Remember that everything is negotiable! Make sure you talk to at least 3 lenders and make them compete for your business…
So, get your notepad and take good notes. The following checklist will help you have a smooth loan application…
1. Make a list of any questions you have about the loan program.
Do not be afraid to ask questions. This is probably the most important transaction investment you will ever make. Be sure to understand the advantages and disadvantages of the various mortgage programs for which you may qualify. Some questions you may want to ask are:
- What is a Loan Origination fee?
- Can you lower your Origination fee?
- What is a Discount Point?
- What is a PMI? Is it a requirement?
- What does it mean to “Lock the Rate”?
Gather your paperwork.
Loan Application Checklist
In general, the documentation you will need includes: | |||||||||||||
Check for application fee and Appraisal |
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Property Information (if you already have a home in mind) | |||||||||||||
Purchase Agreement. | |||||||||||||
Copy of legal description and MLS sheet. | |||||||||||||
If you are selling your current home, copy of listing contract. | |||||||||||||
If you have sold your current home, copy of settlement statement (HUD-1). | |||||||||||||
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Income & Assets |
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Pay stubs for the last 30 days. | |||||||||||||
For the past two years: | |||||||||||||
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Statements for each bank, mutual fund, and/or investment account for the last three months. | |||||||||||||
Estimated value of personal property and furniture. | |||||||||||||
If you have made any large deposits to your accounts: | |||||||||||||
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If you own more than 25% of a business: | |||||||||||||
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If self-employed: | |||||||||||||
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If you own rental property: | |||||||||||||
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If you are retired: | |||||||||||||
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If you receive Social Security: | |||||||||||||
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If you are counting child support as income: | |||||||||||||
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Debts |
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Names, addresses, account numbers, balances and monthly payments on all current loans. | |||||||||||||
Explanation of credit report anomalies, including: | |||||||||||||
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VA Loans |
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Copy of DD Form 214, Report of Separation. | |||||||||||||
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Miscellaneous |
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Photo ID and proof of Social Security number. | |||||||||||||
Residence addresses for the past two years. | |||||||||||||
If applicable, a copy of your divorce decree. | |||||||||||||
If you are not a citizen, a copy of the front and back of your green card. |
Hope this information is useful for you. Please call or send us an email if you have more questions and if you would like a list of our preferred lenders.
Thanks,
John Paul Soto choose to work in Charlotte, NC real estate because he genuinely enjoy working with people, and believe it is an industry that rewards dedication and personal initiative. He also want to give back to his community, and he is currently employed as a firefighter for the Charlotte Fire Department.
John Paul Soto was born and raised in Guatemala, and moved to Charlotte in 2002 to attend college. He is currently pursuing a Bachelor’s degree in Business Management, and will continue to make his home in Charlotte, NC after graduation.
He takes great pride in his accomplishments and hope to continue to build a successful track record helping other people achieve theirs. He is now part of “The Soto and Ferreira Group” on of Charlotte’s NC best Real Estate Groups.
Thanks,
John Paul