Sunday, November 11, 2012

DO’S AND DON’TS FOR GETTING YOUR LOAN APPROVED WITH LESS HASSLE


DO’S AND DON’TS FOR GETTING YOUR LOAN APPROVED WITH LESS HASSLE

1.       Get the following items together.  The faster you get them to your lender the faster your file will progress:

a.       Last 2 years of Signed Tax returns including your W-2s.   If you are self-employed they will need business and personal returns with ALL schedules.

b.      30 Days of paystubs

c.       Last 2 months of  bank account statements-Must have your name and account number on them and must have ALL numbered pages attached.

d.      Current 401K, IRA statements-All pages with your name and account number.

e.      Copy of Social Security Card and Clear copy of Driver’s License

f.        Proof of any other income you receive.  Social Security will need awards letter. Child support or alimony will require court documents.

2.        Make sure there are not any funds deposited into your bank account that are not your normal payroll earnings.  You will have to source all cash deposits and show where they come from.  Cash is usually not acceptable. Be sure to talk to your lender ahead of time if you are going to get a gift.

3.       DO NOT USE CASH AS YOUR EARNEST MONEY! Make sure that you will be able to prove that your earnest money came out of your bank account. Once your earnest money clears your account we will have to have a copy of the front and back of the check.

4.       DO NOT incur any debt! Don’t open any new accounts! This can hurt your debt to income ratio and also hurt your credit score.

5.       DO NOT pay off any debts without talking to your lender.  Paying off debts can decrease your credit score.

6.       Do not overdraw your bank account.  NSF Fee’s do reflect negatively on your loan.

7.       DO NOT co-sign with anyone else on a debt without talking to your lender.

8.       DO pay all of your bills on time.

9.       DO save all that you can to show more assets.  Assets make your file stronger.

The mortgage process is very thorough.  Make absolutely sure to take the application very serious and give the lender the CORRECT information.  This will eliminate some of the headaches for you and help make the transaction smoother.  If you are in doubt about anything, call your lender BEFORE you do anything.