The Mortgage Process: Part 3, Application
You have found “the house” and your offer has been accepted… Really exciting stuff! But what’s next? When you initially completed your application, upon review and approval, your lender either provided a pre-qualification or a pre-approval letter. The terms are similar, but not the same. A pre-qualification is a pretty vague application including very basic pieces of information. While this information may have allowed your lender to give you the initial OK to search for homes… If you chose this route, now that you have found the house you are going to purchase, it is time to revisit that application and add more specific documents and information to keep your loan file moving along in the process.
You will need to provide further documentation supporting your initial loan application. The documentation needed is related to qualifying factors such as income, assets and debts. Providing this documentation will allow your lender to verify that the answers you provided earlier in the process are fully supported. Things like paystubs, bank statements and employer income verification all help solidify your case to the processing and underwriting team. They’ll need hard proof of your financial story to fully approve your mortgage loan.
Documents to Gather
In order to complete your mortgage application you will need to gather some documents to add to your file. Some of these documents include, but are not limited to:
- Income Documentation:
- Two years of W-2s
- Profit & Loss statement if self-employed
- Pensions, Social Security
- Public assistance
- Child support
- Alimony
- Asset Documentation:
- Bank accounts (savings, checking, brokerage accounts)
- Real property
- Investments (stocks, bonds, retirement accounts)
- Proceeds from sale of current home
- Gifted funds from relatives (e.g. down payment gift for FHA loan)
- Debt Documentation:
- Current mortgage
- Liens
- Alimony
- Child support
- Car loans
- Credit cards
- Real property
This list may seem intense, but the more you know upfront the easier it will be to gather documents when the time comes. Also, don’t forget that your Mortgage Consultant will walk you through exactly what is needed for your specific loan and will make sure you feel comfortable and confident during the process.
What to Expect
This part of the process is all about getting everything in order to move your application along to processing and underwriting. The more complete and prepared you are with your documentation, the easier it will be for the processing and underwriting team to review and approve your file, which is the next step in your mortgage loan process.
Cambria Mortgage is here to help you every step of the way, from pre-qualification through closing. Get connected to your dedication Mortgage Consultant today by visiting us at CambriaMortgage.com or over the phone at 952-942-0110.