What Kinds of Paperwork Do You Need for a Mortgage Loan?

Published by julia | Filed under Buyer / Seller Tips, Real Estate, Shout Outs, Uncategorized

So, you’ve decided to buy a house and have even signed a contract. Now, you need financing. You’re going to have to go through the whole mortgage process. While each mortgage experience is slightly different, depending on what type of institution you’re working with and where you live. there will definitely be a ton of paperwork for you to fill out and sign (and that’s not even counting the mounds of documents you’ll be signing at closing!). If you know in advance what you’ll need to get approved for a mortgage loan, it will be a much smoother process for you, and you’ll have a greater chance of succes. And remember, you’ll even need to fill out a copious amount of paperwork if you’re re-financing your current home.

The most important thing to remember is that whatever paperwork the bank gives you to fill out MUST be filled out properly and submitted on time. Today’s banks are really looking for any excuse to NOT lend you money, and being incomplete or late with the paperwork is just the excuse they need to deny you. Don’t give them the satisfaction.

At a minimum, you’re going to need to have copies of your income tax returns and pay stubs for the past several years. You’ll probably need bank statements going back at least a few months, as well. The bank is going to want a list of your assets and liabilities, too, including the ready cash you have on hand in your bank at that moment. And don’t think you’re going to get by without your credit being pulled. The days of banks lending to anyone with a FICO score under 600 are well in the past. If your credit is questionable, clean it up several months before you apply for a mortgage loan, or the whole thing will be for nothing. With a low score, you’re virtually guaranteed to be turned down, even if you have a huge down payment on hand.

Keep in close contact with your mortgage banker throughout the whole process and be sure to call with any questions. If you need clarification on something, ask. It pays to know exactly what your bank needs and to give it to them promptly. The more thorough and organized you are in getting your mortgage paperwork in, the better impression you’ll make on the bank. This will greatly increase your chances of an approval.