Mortgage Application Must-Haves
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Filed under: Mortgage
When looking to buy a home it is important that you take precaution to prepare. Besides knowing your budget and buying within reason to avoid the risk of foreclosure down the road, there are some basic steps to prepare for the application process.
Organization Is Key
Many real estate experts recommend having your mortgage loan preapproval letter prior to applying for a home. This improves your chances at a successful bid, especially when sellers are under time constraints to sell. However, to get a preapproval letter you will need to provide your lender with some essential information about your finances, such as:
- Latest 2 years tax returns or pay stubs
- Latest 2 months bank statements or other acceptable asset reserves
- A signed authorization for your lender to order your credit report
Once you have been preapproved, you will need to have the following documentation ready to complete the mortgage application process:
- Electronic Appraisal
- Preliminary Title Report
- Hazard Insurance
- Estimated Closing Statement
- Signed Disclosures (Good Faith Estimate/Truth in Lending)
- CPA letter and/or business license if self-employed stating 2+ years employment in same job or field
