Working With Your Lender

You’re just starting your search to purchase a new house - this is an exciting time! Before you schedule your first home tour, getting pre-approved for a mortgage is an important first step.  

Here’s a checklist of some of the items your lender may need to help you on your way to buying your next property. 

1. Personal documents.
   You’ll need two forms of government-issued ID, your social security number, or divorce papers if applicable.
2. Review your credit report.
   You should be able to do this free of charge. Be sure to dispute any errors. Then, keep your credit score healthy by avoiding any new credit inquiries, canceling any credit accounts, lowering limits with any creditors, or making any big purchases with credit. Doing any of these things could lower your credit score. 
3. Tax returns.
   You’ll need to provide tax returns usually for the last two years.
4. Proof of income.
   Gather W2s, paycheck stubs, 1099s, or a year-to-date profit and loss statement if you’re self-employed. You may also need to show other income sources such as social security, child support, or government assistance.
5. Proof of assets.
   Provide bank statements, mutual fund statements, account balances for retirement accounts, 401Ks, IRAs, and any money held in the stock market.
6. Debt summary.
   You’ll need to provide a summary of your debts, monthly payment amounts, child support payments and balances for credit cards, student loans, car loans, other property loans.
7. Financial issues.
   You may need to provide a written explanation if you’ve had bankruptcy or other financial issues in the past.
8. Down payment and closing money ready.
   Have these funds ready in your bank account. If you received this money as a gift, you might need to provide a letter from the one who gifted the funds, explaining the gift is not a loan.
9. Renting.
   If applicable, compile proof for the past year with canceled checks or money orders to show rent was paid on time.

Finding the right lender for you.

  All clients are encouraged to choose the mortgage lenders who are most suitable for their wants, needs, and specific situation. If you already have an established relationship and accounts with a financial institution, start there, and ask some questions to their loan department. If they don't offer the products or programs suitable to your needs, then there are numerous contacts that can be provided which have excellent feedback from previous clients and their transactions.