What To Prepare Before Talking To A Lender

What To Prepare Before Talking To A Lender

People who want to purchase a home will need to obtain a mortgage unless they’re going to pay cash for the home. Some people are mystified by the process of getting a mortgage, but this isn’t necessary. Planning ahead can help to make the process easier for you.

One thing you can do to get ready for applying for a mortgage is to gather the necessary documentation. This can speed up the process considerably so you don’t have to wait as long for the pre-approval that can make your offer on a home much more attractive to a home seller.

Proof of Identity

You should have your photo identification and your Social Security number ready when you apply for a mortgage. The loan officer has to verify your identity with your photo identification. Your Social Security number is used to pull your credit report. Once they know your credit score, it becomes a central focus of the process. A higher credit score means you’ll qualify for more favorable terms of the mortgage.

Proof of Assets

You need to show proof of any assets you own outright. This includes bank and investment accounts, so be sure to have statements handy. You’ll likely need to have several months of documentation ready to show the loan officer. This is to who that you’ll have the closing costs you need. If you’ve received gifts from friends or family members, you’ll need a statement showing that the money is a gift. They can’t loan you money for this process.

Proof of Income

Your loan officer needs to know what type of income you have. This impacts how much you’ll be approved for. You’ll need your W-2 statements for two years, as well as tax returns for those years. You also need to have your pay stubs to prove your income for the current year. If you have any other income besides your traditional job that should be considered for the mortgage, you need to bring proof of that income with you.

Proof of Employment

You need to have your employer’s contact information ready for your loan officer. The officer will call your employer to verify your employment and salary information. They may have to contact your previous employer, too. You may have to provide your employer with permission to provide this information.

Proof for Self-Employed Individuals

People who are self-employed may have other documentation that they’ll need. This includes documents, such as profit and loss statements and tax returns. Mortgages for self-employed individuals are a little different than those for people who are traditionally employed, so be prepared to show that you have a successful business that’s bringing income into your home.

Contact The Potempa Team Today

The professionals at The Potempa Team are ready to help you learn more about what you need to qualify for a mortgage. We’ll guide you through the process so you know exactly what needs to be done so you can enjoy living in your dream home. Contact us right away to get started.

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