Anyone buying a home for the first time will likely need to secure financing. It starts by visiting a local mortgage lender and getting pre-approved for your mortgage, which will let you know how much a bank is willing to lend you in order to buy a home. Don't make the mistake of showing up without the proper documentation, which will slow down the whole process. Here are a few things you'll need to have on hand when applying for a mortgage.
1. Bank Account Statements
One thing you need to have is proof of your current income. This plays into your debt-to-income ratio since lenders will not want to give you a mortgage if more than 43% of your income currently goes towards paying existing debts. Instead of digging out weeks' worth of pay stubs for everyone applying for the mortgage, a bank account statement will do just fine, since it will show all of the incoming deposits into your account.
2. Tax Return Documents
While your bank account statements help show money you're currently making at your job, tax return documents will help show how your income has changed over the past few years. This will give the mortgage lender a general idea of how your income has grown and help predict how your income will continue to grow after you are approved for a mortgage. Tax return documents also help show income for people that are freelance or self-employed, since you won't have regular income on a weekly basis.
3. Letters Explaining Gifts
If you have someone that is going to give you a cash gift to help make the down payment, you'll want a letter explaining that the money to be received is actually a gift and won't be required to be repaid. For example, your parents have decided to give you up to a $14,000 cash gift for a down payment, which may be in your bank account or not yet received. A letter can help explain a sudden amount of income that will be made to your account during the mortgage approval process before your closing date.
4. Existing Loan Documents
If you do have debt from things such as student loans or car payments, bring in documents that show how much of the loan is left to be paid. If you have a loan that is near being paid off, this can help the lender look more favorably towards it.
Contact your local mortgage lending services for more information and assistance.
Hello, my name is Sigmond Jenner. Welcome. I am here to talk to you all about acquiring personal loans for emergency expenses. Although everyone should have an emergency fund in a savings account, there are many barriers to achieving that goal. In the meantime, you can look into acquiring a loan to cover emergency expenses that may come up. You should be prepared ahead of time, so you can act fast when unexpected financial expenses arise. I will provide information you can use to prepare yourself for this process. Please come back again anytime to learn more about acquiring loans as needed.