If you want your mortgage process to go extremely smoothly, some planning on your part will go a LONG way towards easing your stress level:
1) Save your pay stubs. You will need your last 30 days of pay stubs at the time of mortgage application.
2) You will need to present your last two years W2 forms and have your tax returns available as well. If you write off non reiumbursed employee busines expenses, such as mileage, meals, etc, these will be deducted from your gross income. You will need ALL pages of your federal tax return, not just the first page.
3) If you are self employed you will need to show 2 years tax returns, both personal and business. The income used will be the net income, after business expenses have been deducted out, and the lender will average 2 years tax returns and that is the income used to qualify. If you are applying for a mortgage after May, you will also need a year to date profit and loss statement, showing income, expenses and a balance sheet, so be prepared.
4) Last two months statements, all pages, from your savings and checking accounts. If there are any large, non payroll deposits, please get a copy of the deposit and be prepared to write a letter, explaining where the money came from. The UW needs this to verify the money was not borrowed. Also, if there is another name on the account, such as a parent, get a letter, signed by them, granting you access to all funds in the jointly held account, signed by the other person.
5) if you have a 401K or thrift plan, provide the most recent quarterly statement, all pages. Also provide the terms under which you are allowed to borrow or withdraw from the plan, as this needed for UW.
6) If you rent, please provide last 12 months cancelled rent checks, to verify your on time payment of rent.
7) lastly, if you have any inquiries on your credit report, or your report shows different addresses, you will need to address these items, noting if you have, or have not, received any new credit as a result of the inquiry.
While this seems like a lot, if you prepare yourself and bring these items with you to your mortgage application, your loan will be clear to close in under 30 days!
This is the list that I give to my customers. If some customers think it is too much all at once, they find that they will constantly be asked to provide more and more information. Easier to get it in at the beginning of the process.
Happy House Hunting! If you are in PA, message me and I would be happy to assist you with your mortgage financing needs.
