Despite the sub-prime problems, the fluctuation in interest rates and the new FHA guidelines, lenders are still processing many new loan applications. Interest rates are still very low historically!
It is important to gather all the necessary paperwork before you submit your loan application. In general, lenders are interested in learning about two main issues: Your capacity to re-pay the loan, and your reputation (history) as a responsible credit
holder (are you likely to default in the future?)
At a minimum, the lender will ask you for:
- Copy of you two last tax returns and W-2’s or 1099’s
- Copy of your last two pay stubs if employed or proof of earnings if self-employed (lenders require a minimum of two years self-employment history)
- Copy of last 6 months’ bank statements
- Verification of employment and income
- Details of any divorce agreement, and long-term obligations such as alimony or child support
- Your Social Security Number or Tax ID Number
- If you are a foreign national, copy of your Green Card or valid Work Visa
Despite the urgency to move quickly to get a mortgage in this market (interest rates are on their way up!), it is important to shop around and compare different lenders. Since they are going to check your credit scores, it is best to shop around at the
same time, so that all enquiries count just as one for your credit score.
Whether you are thinking of buying a new home, or re-financing your existing one, shopping around and comparing loan programs can be challenging. Ask your lender for a Good Faith Estimate and compare rates, fees and penalties to get the program that best
suits your needs. We can help you find some great mortgage lenders. Call or text 843-900-0155 for information on a lender that will work best for your financial situation.