I Didn’t Have to do that the Last Time!

Posted: March 1, 2010 in Uncategorized
Tags: , , , , ,

I cannot even begin to tell you how many times I have heard the phrase “I didn’t have to do that the last time”.  The market has changed.  The economy has changed.  Laws of changed.  Verifications have changed.  TILA has changed. Documentation has changed, and so on.  If you are purchasing a home in today’s climate you need to be organized and prepared.  It is in no way a reflection on you, it is a reflection on the market.  This is not only the case for a Georgia mortgage, it is the case nationwide.  You need to be prepared to provide your loan officer with requested documentation as soon as possible.  Do not delay!  Every second counts these days.  The efficiency of closing will depend on both parties.

You can be better prepared by understanding what will be required.   An underwriter will be responsible for approving or denying your loan.  He or she will verify all of the personal and financial information that you provide in order to issue a confident decision.  The more precise your information is, the easier the process will go.  For example, where is the down payment for the purchase of your home coming from?  Is it in a bank account?  A retirement account?  A gift?  Each of these items requires different documentation. 

1)  It is always a good idea to provide three months of your bank statements to your loan officer.  These statements need to be the three most recent and all pages even if blank. 

2)  You will need to provide two years of personal tax returns.  These days, all lenders are verifying tax returns with the IRS in order to insure they are accurate and have been filed.

3)  A copy of your driver’s license. 

4)  Two years W-2’s.  Yes, you have to provide W-2’s even though your are supplying tax returns.  If you are self employed, then corporate information will be required, such as company tax returns and year to date financials.

5)  Pay stubs covering the last three months.

6)  The sales contract which is fully executed by all parties.

7)  Divorce decree, if applicable

8)  Lease on other property owned

Yes, this is a lot of information.  However, I would highly suggest using someone who you trust to walk you through the process.  It can be as easy or as hard as you and your loan officer make it.  The process requires asking the right questions at the start so it will be smooth sailing at the end.

Buying a new home can be a very stressful time.  Please do your homework, ask your friends and family for referrals, and use a qualified loan officer that will hold your hand. 

If you have any questions or concerns please don’t hesitate to call.  I will gladly walk you through the process.

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