Apr
29

Know What to Bring to Your Lender When Seeking a Mortgage

April 29, 2014

QM rules mean more paperwork for Chicago MortgageWith spring in full swing, there are more and more homes coming onto the market, and now is the perfect time to get the ball rolling on your mortgage application process. Getting a head start on this financial check-up can help you shape the way you conduct your home hunt, can save you time and energy now and can save you money in the long run.

The new article, “What Do I Need to Apply for a Mortgage?” gives you the lowdown on the things you need to get a loan pre-approval. Here’s a list of things to take with you to see your lender, but keep in mind that you may be asked for more information/documentation:

  • Social Security numbers or individual taxpayer identification numbers for all borrowers
  • Home addresses for at least the past two years
  • Current names, account numbers, and balances of checking, savings, money market, retirement, and credit card accounts
  • The address of your bank branch
  • Checking and savings account statements for the past three months
  • Your most recent pay stubs, W-2s, or other proof of employment and income verification
  • Federal income tax returns for the past two years
  • Evidence of any other income you receive (such as child support orders or Social Security award letters) if you wish to include this income for qualification
  • Balance sheets and tax returns if you are self-employed
  • Divorce settlement papers (if applicable)
  • Canceled checks for rent or utility bill payments to show payment history
  • Information on other consumer debts, such as credit cards, car loans, furniture loans, student loans and department store credit cards
  • Gift letters, if you are using gifts from parents, relatives, or organizations to help cover the down payment or closing costs. Gift letters state that the money you received is a gift and will not have to be repaid.

All of this and more, including information that your lender will obtain through credit checks, comes together to get an accurate forecast of how much you can afford and how much you will be paying for years to come on your home. An article on Forbes.com explains why all of this is now required as a part of the new QM rules for mortgages. Be careful to make sure you borrow to live within your means, as overspending can keep you from a happy retirement or leave you with inadequate emergency savings.

To learn more about mortgages, real estate, retirement and more, see the Equifax Finance Blog.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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