Congratulations! Now that you have found the perfect home, all that’s left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved. Property Description When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a down payment. Borrower & Co-Borrower Information All persons named on a home loan must be able to provide their name, date of birth, current address, former address (if within the last two years), marital status, current and former employment information, telephone number and social security number. Most lenders require tax returns for the two years preceding the loan application, along with current paystubs or, if self-employed, a year-to-date profit/loss statement. Current Mortgage Expenses An important part of every home loan is affordability, which is why your lender will need to know how much of your income is available to pay for a new home. If you have a current mortgage, be […]
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Now that you’ve decided to purchase a new home, it’s important to know what to expect throughout the loan process. With the right knowledge, the road to home ownership is just ahead. Choose A Home Some lenders may offer a pre-approval, but others require that you have a specific home chosen before they will discuss loan options. Therefore, the first step to obtaining a home loan is to first select a home. Some sellers may require you to provide an earnest money deposit, which secures the home while you obtain financing and have the necessary inspections completed in order to finalize the purchase. Check Your Credit Before you even think about applying for a mortgage, it’s important to know where you stand from the lender’s point of view. Checking your credit report is a good idea for many reasons, but it’s an essential step in your journey toward buying a home. Every 12 months, you can request a free copy of your credit file from each of the three major credit reporting agencies – Equifax, TransUnion and Experian. Look for inaccuracies, outdated information or anything that requires your attention. If you spot anything, file a dispute right away to get […]
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Finding the perfect home is a task, but shopping for the best home loan can be even more tedious. With so many lenders promising low rates, closing costs and little or no down payment requirements, it’s often difficult to know which way to turn. Luckily, there are several steps that you can take to find the right lender for your individual needs. Assess Your Situation Do you know what your credit score is? If not, you should. Most lenders rely on this triple digit number to determine both your creditworthiness and interest rates. If you have excellent credit, you can probably work with almost any lender. If you have severe blemishes in your financial past, however, finding the right lender may require a little more footwork. How much money do you have for a down payment? If you are on a budget, you will need to choose a lender that can help to get you into a home with a minimal down payment. Knowing where you stand will give you a good idea as to which lender you need to work with. Compare Rates As is the case with anything in life, it pays to shop wisely. Because a home […]
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