Things that Need to be Readily Accessible When Applying for a Home Loan

There are several things that need to be taken cared of if you are planning to apply for a home loan and ensure that you will be qualified for it. Checking your credit score is just one of those. And it should be emphasized that this is just one of those things you need to take care of. Hence, your effort must not be focused on this single task alone. It is important to know what those other tasks are, which should include the following:

Have Access to All Sources of the Assets You Aim to Use for Your Mortgage

Such sources of assets you may want to prepare for easy access are your bank statements, IRA, and investment account statements. Make sure to document all the large documents into the mentioned accounts. The purpose of doing this is to ensure that when your mortgage lender wished to check on the sources of funds you are using for the down payment, they are readily accessible. Documentation must also be done if you are using funds that came from a gift for the down payment. In this case, the donor must be informed about the need for them to provide the necessary information regarding their ability to donate.

Keep in mind that the verification of assets is among the top reasons why home financing transactions often gets delayed. So ensure that you have all the needed documentation the mortgage lender might require from you.

2 Years of Tax Returns Plus all the Schedules

Be aware that mortgage lenders always require tax transcripts from IRS. They will also wish to have the documents you submitted to be verified. As an advice, it is best to submit the tax returns earlier than the scheduled. This way, underwriters can easily verify your income for qualification. This is also necessary to eliminate any hang-ups beforehand and prevent them from affecting the processing of your home loan.

Prepare all Your Relative Assets, Credit Documentation and Income for Easy Access

Don’t forget to provide enough information regarding your credit, assets and income profile following the 72-hour period after meeting with your mortgage banker. The benefit of ensuring this it lets you save time. All things that need clarification are also clarified beforehand, which helps in making the process go as efficiently as possible.

These three are the things that you should never forget about when applying for a home loan. Prepare and take care of them as early as possible if you know you will need to apply for a home loan soon. Aside from that, it is best to avoid opening a new credit account, particularly during the processing of your mortgage. Your moving expenses must be documented as well with your payment amounts and account statements. Otherwise, this will only have an impact on your debt to income ratio. Be reminded as well that even transferring money, especially large amounts and depositing cash to your account is not a wise choice.

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