Gather Your Documentation
Before you make a loan application, you’ll need to gather up some documentation for your lender. Each lender has their list of needed items, but most include these basic things:
- Your landlord’s ( for the last 2 years) contact information.
- W-2’s for each one on the mortgage.
- Recent paystubs for each borrower
- The last 2 years tax returns for each borrower
- If you are self-employed, an up-to-date Profit & Loss statement with the 2 previous years’ tax returns
- Information on all outstanding loans, including credit cards
- The last 3 months’ bank statements for all bank accounts
- If you filed Bankruptcy within the last 7 years: You’ll need discharge documents, a written explanation of why you filed bankruptcy and proof of clean credit after filing.
Come Clean from the Beginning
Sometimes buyers try to withhold financial information from the lender, or forget about information that should be disclosed. With today’s record-keeping, it’s highly likely that the information is going to surface during the loan process, so it’s really best to bring everything to the lender. If you don’t and some damaging information comes out during the process, it just creates a lot of drama along the way, and can have a negative effect on the loan process. Better to know upfront. The sooner the problems are known, the sooner you can make the necessary corrections.
Two Main Players in the Loan Process
There are basically two parts to the loan process, the loan officer and the underwriter. Kind of a Yin and Yang. The loan officer is the salesman. He is “packaging” you so that you look your best to the underwriter. The underwriter is trying to find anything about your file that would warrant his denial of your loan. The checks and balances of this system work to make sure both parties, the bank and the borrower, are getting the best consideration.
Before you begin the house hunting process, make sure to keep a close eye on your credit score. Credit is now more important than ever in getting the loan and getting the best rates.
Contact Us for our list of preferred Frederick Md lenders.