It is not quite as easy to get a mortgage these days. In years past, it almost seemed like lenders were all too happy to help you increase your debt. Now there are strict guidelines that must be met before you can sign on the dotted line. Nowadays, lenders want to make sure you are a good investment as well as making sure you do not get in over your head.
If you are applying for a mortgage, then there are certain documents you should bring to your interview with the lender. By bringing these documents with you the first time, you can save time and possibly hassle.
Verification of income
Copies of forms like W-2, pay stubs and tax returns for at least the last two years are good to bring to your interview. Lenders will want to know that you have a steady income so that you have a reliable way of repayment. If you have other forms of income like a monthly government payment or a settlement then you will need to provide proof of that as well.
People that are between jobs often need the mortgage loan, but are not always good candidates due to lack of steady income. It is sometimes hard to think about the risk that lenders are taking when they set up a mortgage for someone.
List of assets
This includes bank accounts and the corresponding information such as bank branch address and statements for the last few months. You will also want to bring the titles of any vehicles you have that are paid off in full.
List of bills/debts
This includes but is not limited to credit cards bills, student loans, home loans, vehicle loans and any other consumer loans. This even includes things like furniture payments. You also need to provide alimony and/or child support payments.
The reason lenders want a list of your debts is so that they can see if you have enough income to balance your debts and a mortgage. If you have too much debt and not enough income, then you may not be a very good candidate for a mortgage.
Details about the property
Bring a copy of the purchase agreement and proof of deposit if one was made. These documents will allow the lender to get a better idea if the property is worth the investment.
Proof of how you made your down payment
Many lenders will want to see proof of how you made your down payment. If you paid with a check, provide a copy of the check. If you got the money from a friend or relative, provide proof of the gift check and a letter from the friend or relative stating the money does not have to be paid back. If you borrowed the money then it will have to go on your list of debts.
It is always a good idea to find out what to bring when you are going in to speak with a lender. Certain documents like income verification and tax forms are common sense, but the lender may also want to see other documents. When in doubt, simply ask what to bring to the interview.