Home loan application 101


Applying for a home loan can be a foreign process to first time home buyers.  I want to take the mystery out of the process.  You need to know what information the lender will need to document your loan application.  It is always good to begin collecting and saving these documents once you begin thinking about shopping for a new home. 
 

Current pay check stubs covering 30 days of earnings
2 years W2 forms
2 years federal tax returns – if you are self employed or receive rental income or if your bonus or commission income is more than 25% of your base pay
2 months bank statements – all pages – include all your assets
Copy of divorce decree if you receive or pay child support
Record of payments from child support office – if you receive support and want to use this for qualifying income
Social Security Awards Letter if you receive social security income
Bankruptcy discharge and schedules if applicable and a signed letter to explain the reason for the bankruptcy
 
You will be asked to provide the address of your residence over the last 2 years.  If you rent, you will also need to provide your landlord name, address and telephone number.
 
The lender will need to verify your last 2 years employment history.   Provide the dates of employment for your current and any previous employer within the last 2 years.
 
The lender will look at your last 2 months of bank statements to see what deposits have gone in your account.  Deposits other than pay check deposits may be questioned.  You may have to verify the source of any large deposits.  If you have any NSF checks, you will need to explain the reason for the NSF.
 
Having this information at the time of your loan application will speed up the process of getting your loan decision.
 
If you are interested in getting approved for a home loan, please contact me at mindy.bumps@bankofamerica.com or on my cell phone at 317-414-3245.  I would be happy to qualify you for a home loan and answer any questions you might have.