1. Patience – Out of everything, this is an essential piece of the puzzle. For example, you’ll need to submit a lot of documentation. And sometimes you might have to provide things more than once. Know that from the beginning, be flexible, and willing. Also, once you turn in your documents, there might be some questions. So be available to answer them to keep things moving along.
2. Credit – When you fill out your application, your loan originator will pull your credit. If it’s good, don’t change anything you’re doing. That includes – don’t apply for new credit, increase what’s on your credit cards, or buy a new car. Doing any of those things could make it so you don’t qualify for a mortgage. If your credit is not quite as good as what it needs to be, find out what you can do to improve it.
3. Documentation – We talked about the paperwork above. You’ll have to supply proof of income and assets (for all borrowers) and show that you can repay the loan. Here are the most common things needed:
PROOF OF INCOME
· Employee – If you have a job, you’ll need your most recent pay stubs covering the last 30 days. You might also need to provide your W2 from the previous year.
· Retired – If you receive social security, you’ll need to have your most recent awards letter. You’ll also need to show proof of any retirement pension you receive if you’re using that income to qualify.
· Self-Employed – as a business owner, you’ll need to submit two years of taxes, any 1099s, and a current profit and loss. On the profit and loss, it doesn’t have too many details. It only has to show income, expenses, and whether you had a profit or a loss.
PROOF OF ASSETS
· Assets – You’ll need to show proof of your assets. That includes two months’ most recent statements for all checking and savings accounts. Make sure you supply all pages to statements even if the page is blank.
· Down Payment – where is your down payment coming from? Is it a gift? If so, you’ll need to show where it’s coming from and get a signed gift letter.
4. Updates – Your file will move from your loan originator to the processor. They verify the information on your application is complete. They also make sure they have all the needed documentation. If anything is missing, they’ll request it.
Once your file is complete, it goes to the underwriter. They look at your ability to pay back the loan and verifies you qualify for the type of loan you’re asking for. If they have any questions (most likely they will), they’ll ask.
So, as you can see, getting a mortgage is quite a process. But if you have the correct expectations and are willing to supply what’s needed, you’ll do fine. When you work with San Diego Funding and Great Pacific Funding we’ll make your experience smooth. The advantage of working with an experienced local lender is you can walk into our office and get all your questions answered face-to-face. We can go over your mortgage loan options and get you on your way to owning your first home. Contact us today.