Gettin' a Mortgage Loan

Buying a home will most likely involve getting a mortgage loan. To get a mortgage loan, you need to work with a mortgage loan officer. This mortgage loan officer will need a handful of documentation from you to basically give you the biggest credit card that you will ever get to shop with!! Really, who else gives you a couple hundred grand and tells you to find the home of your dreams?!! So, to get that big a&$ credit card, you need to prove that you can pay it back on a month to month basis; thus the need for the amount and type of paperwork. (Digression: Have you read, If You Give a Mouse a Cookie? Doesn't this paragraph remind you of the book?!!)

Here is what I recommend, find a great mortgage loan officer. Don't choose your neighbor's sister-in-law's-second cousin by marriage because you feel that you HAVE TO (don't do this with your real estate agent either...chose who is a fit for YOU!).  Ask around for a few referrals. If you have a friend who recently bought a house, ask them who they worked with on their mortgage. If they were happy with their lender/mortgage loan officer, get the contact info; because chances are that if your friend is happy with their lender you will be too. Ask your real estate agent as to who has a great reputation in the mortgage industry. Your real estate agent will be your best resource on many things, so pick their brains, and use them to find not only your home but people they have experience working with. Feel free to ask for a couple of names of different lenders so you can interview the lender. Buying a home is a HUGE investment obviously, but also a huge time and emotional investment. Work with someone you are comfortable with on the real estate side as well as the financial side. Your lender is HUGE in making sure your transaction closes in a timely manner. So choose wisely my friends. 

To get pre-approved for a mortgage loan, your lender will ask you for various documents that will prove you can afford the payment. The more organized that you are with your documentation, the better they can serve you. If they have to wait on documentation from you, it will hold up the whole process. Your lender is there to help YOU get the best loan program at the best rate for you so when they ask you for documentation, they are not compiling the info for any other reason than to help you get into your dream home.  To prove you can pay back the mortgage, the loan officer will ask for these documents:

• Where the down payment is coming from (checking account, saving account, gift?)
• Last Two Years of your W-2's
• Last Two Years Personal Tax Returns filed with IRS (all schedules)
• Thirty Day Current Pay Stubs
• Two Months Current Bank Statements for ALL accounts (all pages)
• Investment Accounts/401k and Retirement Statements (most current, all pages)
• Homeowners Insurance Agent Name and Number
• Copy of Mortgage Statement
• Proof of Taxes/HOA-other properties

And if any of these apply, you will need to supply this documentation as well: 

If Retired

• Social Security Award Letter
• Pension Award Letter
• Last two years 1099s

for a VA Loan:

• Copy of DD214 
• Certificate of Eligibility 

For USDA Loan:

• Proof of Income for Non Borrowing Household Members

BUT WAIT, there's more: 

• Copy of Mortgage Note/Agreement for Sub 2nd
• Copy of Permanent Resident Alien Card (s)/ Visa
• Divorce Degree
• Child Support Order
• Bankruptcy Papers and Discharge Notice
• Rental Agreements for all Properties Owned
• Copy of Drivers License

So, there is a theme here. To get a mortgage loan, you will have to show documentation that proves you can pay this loan back on a monthly basis. The mortgage loan officer/lender/insert your favorite title here, is working on YOUR behalf.  Do your research, interview real estate agents, mortgage loan officers and get your paperwork ORGANIZED and ready to roll. The more YOU are on top of the game, the better everyone working on your behalf can do their jobs. 

It is always my goal to make this process as painless and stress free as possible, but, I, along with your lender, will NEED you to be Johnny-on-the-Spot getting this documentation in!! And, if you are not in the best place financially, or need to know how to fix your credit so you can be in a position to purchase in your near future, call me and I will help you get on the right track! 

Till' next time peeps! 

Disclaimer:  All information listed in the bullet points came straight from a  Guild Mortgage handout I received on April 21, 2015. If you would like a copy of this flyer, let me know and I will get it to you!

And my normal disclaimer:
*Disclaimer: I do not claim to be a professional writer nor am I am proficient in where to place commas, when to italicize (or is it appropriate to italicize or use parenthesis?) and that my sentences are grammatically correct. I am merely releasing all the thoughts that are in my brain and sharing them with you. If you enjoy my posts GREAT but I know they are written with many errors. Taking a creative writing class or a grammar class is next on my “to do” list. I promise. I also like to use double exclamation points!!!! (sometimes more than 2 and sometime a question mark and exclamation point!) I am  NOT a licensed mortgage lender, property manager, credit expert, professional negotiator or anything of that nature.. This is strictly "good info" to know regarding Real Estate as I learn it on the job!