The Loan Process
The loan process can seem overwhelming and scary for some people and we find that if our clients know what to expect it makes the process easier. It feels like you are gathering every piece of paperwork under the sun and you might find yourself thinking “why on earth do they need that?” Sometimes it seems you have to provide documents a second time, which can seem redundant, but lenders have specific formats they require information in and they also require complete documentation, so even if page 7 of 8 appears to be blank, they will still need it. The moral to the story is, do everything you can to get your lender the complete information they request as soon as possible in the format they need, and your loan process will run smoother. We always tell our clients: "Your lender will not ask for any information they don't need. They actually don't even WANT information that isn't absolutely necessary. If they ask for it, provide it!"
We can help you prepare for the loan process and also connect you with lenders that are best suited to your unique situation. Here are some helpful tips and common documents asked for during a loan application:
- Driver’s License, Resident Alien Identification
- All checking and savings account statements (ALL pages)
- All money market account statements (ALL pages)
- Most recent brokerage house statement of investments
- Monthly mortgage statement on real estate owned
- Employer information (name, address, phone, length of employment)
- Landlord’s name and address for 12 months verification of residence
- Lease agreement for any investment properties
- Current pay stubs - minimum 30-day period
- Most recent 2 years W-2 Forms
- Most recent 2 years tax returns (ALL schedules with ALL pages)
- Year-to-date P&L Statements if self-employed
- End-of-year balance sheet
Then, once you are under contract you will need to provide: 1. Legal description of property 2. Copy of Contract to Buy and Sell Real Estate 3. Hazard insurance declarations page 4. Copy of earnest deposit (check or wire) We have found that it is VERY wise to start this process before you begin your home search. Some buyers may have credit issues that come up (and may not even be aware of) and may need a referral to a credit expert. If this is you.... We can help you with that as well!
Let's say you are sitting there thinking to yourself what kinds of loans are there? Conventional, FHA, VA, USDA, First Time Homebuyer, Low down/NO down payment... WHOA! That's a lot of stuff! Call us, we can help you with that. We can help you work through a loan application and can answer any questions you have about the process. With reasonable expectations, and the right team in place, we can get you through it!
