What do I need to apply for a mortgage? This is a question that many would-be homeowners find themselves asking. While the exact answer will depend on your specific circumstances, there are certain things that every aspiring homeowner should locate if they want the process to go as smoothly as possible.
Obviously there will be some paperwork involved in applying for a home loan. After all, documentation is necessary for any major financial transaction. However, savvy borrowers know that the crucial first step in successfully applying for a mortgage is finding a knowledgeable loan officer to serve as your guide. Your loan officer can give you a thorough, exact answer to the question, “What do I need to apply for a mortgage?”
What Do I Need to Apply for a Mortgage?
At first glance, the prospect of (1) sorting through the home loans available to decide which option best meets your needs and (2) identifying the steps you need to take to secure that home loan can be intimidating. That’s why enlisting the aid of a friendly, experienced loan officer is a smart decision. These loan experts can educate and advise you about your options and the application process. You’ll be able to move forward through the mortgage maze with confidence.
The Role of the Loan Officer
A loan officer works to match people and businesses with suitable loan programs. As the U.S. Bureau of Labor Statistics explains, a large part of a loan officer’s job is answering questions. A loan officer knows all the ins and outs of the various loan options that their company offers and understands what is generally necessary for a borrower to qualify for each one. They use this knowledge base to educate loan applicants about different kinds of loans and their respective terms, providing them with the facts they need to make an informed decision. In addition, they help the applicant navigate the loan application process as they collect, verify, and analyze the necessary financial data and review any loan agreements to ensure that they are in compliance with both federal and state regulations.
Mortgage Application Necessities
Once you’ve decided what type of home loan will work best for your needs, it’s time to gather the necessary documentation. Borrowers typically need the following items when completing a mortgage application (source):
- Copies of each applicant’s Social Security Card
- Copies of each applicant’s driver’s license
- A residency history covering the previous two years (For owners, this should include the mortgage, insurance, and tax information for your primary residence and any other properties owned. Renters should provide copies of leases and evidence of on-time rent payments.)
- An employment history for the two preceding years (Any significant gaps in employment should be addressed.)
- An income history
- Copies of the two most recent consecutive pay stubs detailing year-to-date earnings
- Documentation of any commissioned income if it comprises 25 percent or more of your base income
- Copies of W-2s for at least the past two years
- Copies of all pages, including those intentionally left blank, of statements for all checking and saving account for the preceding three months
- Copies of quarterly or semi-annual statements for checking, savings, money market funds, certificates of deposit, individual retirements accounts, 401ks, stocks, and other similar financial instruments
- Copies of a HUD1 if you have paid off a mortgage in the two years prior
- Authorization for the lender to run a credit report
- A check for the expense of appraisal and credit report
- A suitable paper trail documenting any assets that will be utilized as cash reserves, the down payment, or closing costs
- A bank statement or canceled check documenting the exchange of earnest money, if applicable
- A copy of the sales contract when it is ratified
To learn more, please check out our page Applying for a Home Loan.
Completing the Application
Once the necessary documentation is in hand, completing a mortgage application is simple. As Zillow notes, you can opt to complete an online application, fill out a paper form, or meet with a loan officer and have them handle the paperwork with your input. Whichever route you choose, you can always reach out to your loan officer for clarification or assistance if you have any questions or concerns.
What do I need to apply for a mortgage? What’s the difference between prequalified and preapproved? How does my down payment impact my mortgage options? If you have questions like these, reach out to the experts at PrimeLending of Springfield, Missouri, for clear, honest answers. Our team of home loan experts focuses on making every step of the home-buying process simple, transparent, and rewarding. With our expertise and commitment to clear and timely communication, we can guide you through the mortgage process from application to closing. To get started, please call 417-616-0777 or contact us online. We look forward to hearing from you!