Welcome to Real Estate News You Can Use.
This month we're going to be talking about the mortgage loan process.
Now, I am not a mortgage lender. I am a real estate agent.
However, I see what the buyers are going through who are working with our team. I hear about the challenges and I have learned a great deal about what buyers do go through when they get a mortgage loan because, in the last 30 days I refinanced one of my own properties. It's been a while since I did it. The process was much the same as it always has been, but of course, when you're going through it yourself, you really feel the stress of it.
I thought it would be useful to break the mortgage process down and talk about it this month. First, we're going to talk about the documents that you have to provide to your lender to get the process started and then we're going to talk about some special concerns around the bank account.
How do the lenders look at it some things you should do and not do as you are going through the mortgage process as it specifically relates to your bank account? We're going to talk about who is the underwriter. What does that mean and at what point is that applicable in the loan process for a buyer? And then we're going to talk about the appraisal and especially in a market where values are rising and what happens to your loan or how does the appraisal impact your loan.
First, what are the documents that you're going to need to provide to your lender. Well, the first thing the lender has to do is figure out what you qualify to buy, what purchase price is comfortable for your budget?
You're going to have to supply income verification documents. Now, those would be 30 or 60 days of your pay stubs and the last W-2 that you received from your employer.
Now, if you're self-employed, you will be providing your tax returns and probably a Profit and Loss statement, maybe a balance sheet. We'll go over that a little bit more later. First, you get those W-2s and your bank statements over to the lender, they will also ask for your tax returns and very likely your driver's license on the front end of the process just to validate that you are who you say you are.
Once you provide all that documentation to your lender, they will analyze it and determine what you are pre-approved to purchase. Now, if you delay the process, maybe because you can't find a home or because you don't submit all the documents at one time, the documents could become dated so just know that if your loan or your purchase process gets stalled, you will have to continually update your lender with those income documents. That's the skinny on the documents that you're going to need to provide to your lender.
I hope that you find this information useful. If you need more information, please reach out to me.