Into the Wild... Navigating the Mortgage Process, Part 1

Let me point out right off the bat that it doesn't need to be complicated or stressful. As a matter of fact, we go out of our way here to make the entire transaction as painless as possible. Our motto is ...simple as that ® and I truly believe that says it all. But I've seen this time and time again. Borrowers, both new and experienced, give me "the look". You know the look. The one that says... Really??, you REALLY need me to get you THAT? Let me assure you that we never ask for anything we don't need. And one other thing, we never ask for anything we don't need.

Whether you're applying for your first mortgage or your 10th, if you haven't been through the system in the last 4 or 5 years, your view of the process is blurry at best. Government and industry regulations have morphed mortgage transactions into a completely different animal. One that is unrecognizable to even seasoned home buyers. So here's a quick rundown of current procedure. I hope this is helpful, but either way I'd really appreciate your feedback. And feel free to let me know if you feel that I've left something out.

 

I can't cover every eventuality, there are many types of mortgages each with their own requirements. But these are the basics. You'll need:

 

• Tax Returns
• W2s and/or 1099s
• Pay Stubs
• Bank Statements, with an explanation for any unidentified large deposits (by government regulation)
• Copy of your Driver's License and/or Social Security Card
• Letter of explanation for inquiries on your credit report
  
  
• Name and contact information for the company you will be using to insure your home

Incidentally, if you bring the above documents with you when you sign your mortgage application it's likely that your transaction could close much quicker.

Don't be surprised if you are also asked for:

 
• Letter of explanation for the disposition of your current home
• Letter of explanation for any derogatory items or AKAs on your credit report
• Current mortgage statement, insurance and HOA statements, if you own a home
• Copies of leases if you own investment property
• Disbursement letters that demonstrate the continuance of disability or retirement income
• Gift Letter and paper trail of funds if you are receiving gift money
• Name and number of your landlord if you are currently renting

I've never done a blog series in the past, but there is so much information that I've been asked to cover, that it's simply not practical to put it in one post. Next time I'll provide you with the 30-day mortgage timeline, typical for real estate transactions. And the 3rd installment will include definitions of some misunderstood mortgage terms.

Thanks for visiting, hope to see you next time. And as always, if you have any questions just give me a call. Until next time,

                                                                                 Tom