Mortgage lenders and brokers need certain information to determine how big of a loan you will qualify for. Your financial situation is unique to you, but most loans need several key points of data.
Start gathering your documents before you talk with your mortgage broker who shops many banks and types of loans.
You will need to show your mortgage broker:
- Tax Returns – Generally speaking, your broker will want to see two years’ returns to make sure your income has not fluctuated dramatically. Often your broker will have you fill out Form 4506-T that authorizes him to access your returns from the IRS.
- Paystubs, W2s or some other proof of income – Your tax returns show how much income you had last year, but your current paystubs show how much you are bringing in right now. The more information you can give your broker, the faster he can determine the right loan for you.
- Bank Statements – Mortgage brokers analyze your bank or credit union statements to determine the risk you pose. They are checking that your down payment has been in your account for a couple of months instead of yesterday. Your mortgage broker is seeking stability.
- Credit Report – You will need to give authorization for your broker to pull a credit report. Sometimes your mortgage broker will give some free credit counseling to show you how to correct items quickly and increase your credit score.
- Gift Letters – If “Aunt Betty” found it in her heart to give you money so she can watch you enjoy it while she is still alive, you will need to provide documentation for your broker.
- Photo ID – Mortgage brokers will accept a driver license, state ID, or government issued passport to prove you are who you say you are.
- Rental History – If you do not currently own property, your mortgage broker will ask for your rental history to determine that you can pay on time. Either you can provide cashed checks, or you can ask your landlord for documentation that you paid your rent in a timely manner.
If you have questions about which loan is right for your budget, contact Eagles Mortgage Company, Inc. in Downey, CA.