Here are some home loan tips to help you get through the loan application process. No lender lends hundreds of thousand of dollars without checking everything about you. Gather all your documentation so you can address the following:
Personal Information
Have the social security number and date of birth of everyone signing for the loan. Also, the addresses for the last 2 years. Similarly, have the employment information for the last 3 years, including title and time on the job(s).
Income
Your last two pay-stubs for each job you work at and all W-2s for the last two years. If any, make sure you can show any overtime and bonuses earned. Alimony, child support and disability income need only be shown when using them to qualify for the loan amount.
If you’re self-employed, document your income for at least the last two years.
Assets and Liabilities
Document your current assets such as bank accounts, IRA, 401(k), investment portfolio, car(s), boat(s), vacation homes, etc. For each, you need identifying information such as account numbers and current balances. Make / model / year for the vehicles. Address(es) for any home(s), vacation or rental properties.
Liabilities likewise need to be listed and documented. Each of your loan(s), credit card(s) and charge card(s) must be listed with their account numbers and current balances.
Copies of all these documents are needed by the person taking the application, so be prepared.
Additional Items
For some borrowers, there are additional requirements. They are case specific. For example, if you are using child support as additional income, you need to show the court order and the child’s birth certificate. This is to demonstrate that your income can be reasonably expected to continue.
The loan application process is invasive. More so than a car loan or a credit card application as the loan amount is far higher. A lot of personal information is requested. Your privacy needs to take a secondary position for a short time. There are strict requirements on safeguarding your information. It will only be seen by people needing to process the application and make the decision to lend the money.
To apply for a home loan or if you have any questions on these or other home loan tips, contact me at 760 622 5087 or at [email protected]
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