Take Advantage of Low Interest Rates

So, you want to take advantage of the historic low rates to buy a home…Now what do you do?  

First you want to find a qualified loan originator.  You can find a loan originator at your local bank, credit union or you can work with a mortgage lender or broker.   

Typically, your local bank or credit union have loan originators that are available during normal business hours 9 am to 5 pm.  The loan programs, rates, and lending guidelines may be based on the bank or credit unions own specific set of requirements.  In most cases the documents that you will need to complete the mortgage process are the following:

Employment/Income

  • Provide most recent paystubs for 1 month

  • Provide W-2's for the past two years

  • Provide all pages and schedules of last two years personal Federal tax returns

  • If self-employed, provide all pages and schedules of last two years business tax returns and corporate K-1's

  • If retired, provide benefit award letter, last two years 1099's, and all pages and schedules of last two years tax returns

  • If any rental income is received, provide copy of current lease agreement and mortgage statement

  • If VA and active duty personnel, copy of Statement of Service Letter and Off Base Housing Authority Letter

Assets

  • Provide ALL pages of most recent 2 months statements for all accounts; including all checking, savings, stocks, IRA, 401k, etc. The statements must show your name, account number and the name of the banking institution.

  • If funds to close will come from a gift, complete the gift letter and the following:

    • From the donor - bank statements showing the funds in the donor's account and a copy of the check from the donor's account

    • From the borrower - a copy of the deposit slip showing the gift check deposited into your account

  • If funds to close will come from sale of home, copy of Closing Disclosure or HUD-1 from sale of home and deposit slip showing proceeds deposited into bank account

Credit

  • Copy of enlarged driver's license and social security card

  • Copy of divorce decree

  • Copy of bankruptcy papers, including all schedules and discharge, and credit explanation letter for reason for bankruptcy

  • Letter of explanation on any late payments, collections, charge offs or derogatory credit

  • Letter of explanation for all recent credit inquiries

  • If VA, Certificate of Eligibility or copy of DD214

Property

Homeowners Insurance Agent's name, address, and phone number (for subject property)

If refinance, copy of note and mortgage statement from the current lender showing the account number

If you’re retaining your current residence, provide a mortgage statement showing taxes and insurance are included in the monthly payment

If you are currently renting, provide your Landlord’s name, phone number and address. 12 months cancelled rent checks will be necessary for private landlords.

If you live with a family member, please prepare a letter stating you live rent-free.

If you have provided your lender with the aforementioned list of documents up front, your loan application will flow through the system much faster, and with less questions from the underwriter whom will be making the decision on whether your loan is approved or declined.  

During the mortgage process please be aware that just as you are in line to get the best mortgage rates in history, there are thousands of other people trying to do the exact same thing.  Anything you can do to make the process go smoother like being available for a phone call or returning a text or email will go a long way in making sure your loan closes on time. 

 

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