Gather Document to Apply for Loan
• Names and addresses of employers for two years
• W-2s for two years
• One to two years of tax returns
• Most recent year-to-date pay stub reflecting a minimum of 30 days of income or other proof of income
• If self-employed, year-to-date profit and loss statement, plus signed returns for last two years.
• Proof of pension income, if applicable
• Dividend earnings
• Child support earnings (optional)
• Alimony or separate maintenance (optional)
• Bank account numbers and balances
• Bank statements for two to three months
• A copy of earnest money deposit
• Information on debts such as car loans, student loans, and credit card debt
Choose a Mortgage Lender
A home purchase is one of the biggest decisions you will make. When choosing a mortgage lender, it pays to shop around and speak to at least three different lenders. There are many types of mortgage loans. You’ll want to compare rates and fees. Since every home purchase is unique, you want to make sure you choose the lender and mortgage best for you. Choose a lender you feel comfortable with to obtain a prequalification or conditional approval.
Find out how much you can borrow
Before searching for a home, you will want to get prequalified for a mortgage. A prequalification is basically an estimate of how much you can borrow. Once you are prequalified, the lender can provide you with a prequalification letter stating how much you can borrow.
Find the Right Home
Do you need a real estate agent or are you purchasing directly from a new home builder? You need to know what type of home you want … new, existing home … single-family, townhome, etc. Make a list of what you need and want in your home. Are local schools important? Consider all the factors that will make it the perfect home for you.
Make a Purchase Offer and Submit Your Completed Loan Application
When you find the right home, you need to make a purchase offer immediately. Once your offer is accepted, you will need to provide your lender with a signed purchase contract and lock in your loan rate. Your lender will then schedule a home appraisal and order title insurance. At this time, you will want to schedule a home inspection and purchase homeowner’s insurance.
Close on Your Home and Move in
Once your loan is approved, your loan processor will schedule closing (settlement). A Good Faith Estimate will be mailed to you within three business days of application. A day before closing, you will receive an itemized list of exact costs. Please note that your itemized list may vary slightly from your original Good Faith Estimate. You will need to wire funds or bring a cashier’s checks or bank checks to pay for charges due at settlement. At this point, you will attend your settlement and get the keys to your new home.