Whether you’re finally prepared to get into the real estate market or you want to know how you can make a deal quick, there are a few necessary documents you’ll need to prove your reliability to a mortgage lender.

Here are the documents you’ll want to have on hand when the time comes.

Previous Tax Returns

In order to ensure the earnings information you’ve provided to the lender, you’ll need to have your tax returns for the two years prior to your mortgage application. In addition, you may also be required to provide your W-2s as backup documentation.

Bank Statements

To make sure you’re a solid bet who will be able to make your down payment, you’ll need to present bank statements to ensure you have a cushion in the case that interest rates increase. If you do get money gifted to you for your down payment, you’ll need a letter to prove you’re not indebted to the provider.

Recent Pay Stubs

It can be much more difficult to get approved for a mortgage if you have a patchy work history or happen to be self-employed, so you’ll need 2 months of recent pay stubs to prove consistent employment. The pay stubs provided should also be an accurate reflection of the salary you’ve provided on your application to ensure no discrepancies.

Investment Statements

It’s certainly a good sign to the lender if you have a healthy balance in your checking and savings accounts, but you’ll also need to provide any statements for mutual funds and other investments. While they may not be necessary to prove financial soundness, they will help with approval if you have a lot of money squirreled away.

A Listing Of Debts

While it may be the least popular of the pile, a lender will also want to know about any outstanding debts like auto loans, credit card payments or student loans. It may be tempting to forego these documents, but it will give the lender a good sense of your honesty and your ability to manage your mortgage.

Mortgage approval may seem like a time-consuming process with no certain end, but by having the appropriate documentation and being upfront about your debts, you may be able to speed up the time frame. If you’re currently perusing your mortgage options, be certain to contact your trusted mortgage professional for the inside scoop.

Are you ready to join the ranks of homeowners in our local community? Congratulations – homeownership is a big step towards building your net worth and financial freedom. However, it is also a significant transaction that will affect your finances for the foreseeable future. Let’s take a look at a quick four-step checklist that will help you to get ready to buy a home with a mortgage in 2018.

Step 1: Set Up A Monthly Budget

It might sound a little basic, but the best first step is to commit to a monthly budget. After you buy a home using a mortgage, you will be responsible for making monthly payments for a period of time. The faster you get used to working inside of a budget, the better.

Your budget doesn’t have to be extravagant. Simply list your sources of income and your expenses. If you are spending more than you are making, you are going to need to cut back a bit.

Step 2: Start Setting Aside Your Down Payment

If you haven’t already, it is an excellent time to start gathering the funds necessary to make your down payment. This is the amount of cash that you put forward against the price of the home. The remainder of the purchase cost is covered by your mortgage, which you will pay off monthly in the future.

Note that the standard down payment amount is 20 percent of the home’s purchase price. If you have less than this available, you may be required to purchase mortgage insurance. But don’t let this deter you from starting the process now, especially if you have found the house that you want to buy.

Step 3: Check Your Credit Rating

Next, you will want to check your credit rating and FICO score to find out if you have any outstanding issues. You can access a free credit report from any of the major reporting agencies up to once per year, so be sure to take advantage.

Step 4: Meet With Your Mortgage Advisor

Last, but not least, you will want to schedule a meeting with your mortgage advisor. This is your opportunity to have all your mortgage-related questions answered by a professional who has your best interests in mind. If you decide that you are ready to move forward with buying a home, you can begin the pre-approval process at your convenience. We look forward to helping guide you down the path to buying your dream home!

Have you finally found your dream home after months of searching, only to discover that the seller has received other offers? Few circumstances can raise your stress level as much as finding yourself in a bidding war against another buyer. However, being unprepared by not having your finances in order can make the situation even worse. Let’s take a quick look at a few ways that you can speed up your mortgage approval if you are in a hurry to buy your next home.

Pull Your Credit Report ASAP

The first step you will want to do is check your credit report so you have an idea what your mortgage lender will be seeing. You can get a free copy from the major credit reporting agencies up to once per year, so take advantage. There are scams out there, so be sure to only request a report from a government-approved credit agency.

Get All Of Your Paperwork Ready Before You Go In

You will want to gather up as much financial documentation as you can before heading in to meet with your mortgage advisor. Pay stubs, tax forms, and bank statements are all going to be required to prove that you are accurately reporting your current financial situation. You will also want to be able to provide reasons for any substantial loans or other transactions that have taken place in the past couple of years.

Share It All And Keep No Secrets

If you want your mortgage approval to come back quickly, it’s best to be truthful and hold nothing back during the application process. If you lie or try to gloss over areas that you feel are a bit negative, it can end up delaying your approval. Be straight with your advisor and don’t keep any secrets from them.

Work With A Professional Team

Last but not least, if you want the fastest possible mortgage approval you will want to work with a professional team. An experienced mortgage advisor knows the ins-and-outs of the mortgage marketplace. They know which lenders will be able to process quickly and which tend to be on the slower side. If you try to borrow a mortgage from a bank or large lender, you are tied into their process which may not be as quick as you would like.

When you’re ready to buy a home, give us a call. Our mortgage team is happy to help you secure your financing, no matter how much of a hurry you might be in. We look forward to assisting you!

Are you ready to dive into the real estate market for the first time? Buying a new house, condo or apartment is an exciting experience that sets you on the path to building your net worth. However, if you are planning to take out a mortgage, you should be aware that there are some potential pitfalls to avoid. Let’s explore a few of the key mistakes that first-time homebuyers make when they are shopping around for a mortgage.

Mistake #1: Trying To Rush The Process

The first mistake that you will want to avoid making is trying to rush the mortgage process along. Even if you have all of your paperwork ready before you enter the building, it can still take your mortgage lender some time to complete the background checks necessary to determine how much risk you represent. If you need to close on your new home quickly, it’s best to get pre-approved for your mortgage amount first.

Mistake #2: Ignoring Your Credit Score

Ask yourself: when is the last time you checked your credit score? Is your credit history healthy or does it need some attention? Are there any black marks or delinquencies in your past that need to be dealt with? Many first-time buyers fail to appreciate the importance of their credit score when they apply for a mortgage. Don’t make the same mistake.

Mistake #3: Being Behind On Your Taxes

Another crucial mistake that is commonly made is not being up to date with the IRS. While being behind on your taxes is never a good place to be, it can be significantly worse if you are trying to take out a mortgage. Remember that a mortgage is a large loan and one that presents a certain amount of risk to the lender. If you are not paying your bills on time, they may decide that you aren’t worth the trouble.

Mistake #4: Not Working With A Mortgage Professional

The last mistake we will warn you to avoid is trying to move forward with a mortgage without consulting a professional first. An experienced mortgage advisor knows far more about the current market than the average person does. The last thing that you need when you are trying to buy a home is bad advice. It is a good idea to work with a mortgage professional who has your best interests in mind.

When you are ready to buy your next home, contact us. We would be happy to share our insight and help you choose the mortgage product that best suits your needs.

Have you been hunting for a new house without finding one that suits your needs? If so, one option that you may want to consider is building a new construction home on a choice piece of land. In today’s blog post we will explore a few different mortgage options for those who are looking to build a brand-new home.

Qualifying For A Construction Mortgage

As with any mortgage product, the first step you will want to take is to begin the qualification process. As your lender does not have a completed house to use as collateral for your loan, qualifying can take a bit longer than usual. Your mortgage lender will gather information about the home you plan to build, including its size, features and who is contracted to build it. The more information you can provide during the qualification process, the better. You might find it helpful to have your builder or general contractor involved as they will have many of the answers needed.

Construction-to-Permanent Mortgages

One type of new construction mortgage is known as a ‘construction-to-permanent’ loan. With this kind of mortgage, you only go through the closing process once. In many cases, while your home is being built you are only responsible for paying off the mortgage interest each month. Once your home is finished, your lender will convert this mortgage into a standard mortgage like any other. You can choose from a variety of amortization periods, interest rates and more.

Standalone Construction Loans

A standalone new construction loan is a bit different. With this product, you borrow money to finance the construction of your home and then again as a permanent mortgage once the home is completed. These loan and mortgage combinations require you to go through the closing process twice and thus your fees may be a bit higher. However, if you are currently living in a home and won’t have much cash until it is sold, this might be the right product for you.

As you can see, qualifying for a mortgage to build a new home on a piece of land is a bit different than a typical mortgage. To learn more about construction mortgages or to start the application process, contact us today. Our professional team is happy to share our expertise.