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Applying For A Home Loan

Posted by  on Apr 16, 2009
 
When applying for a home loan, there are some documents that you will need. For a fast and easy loan process, have the following items available when you talk to one of our Home Loan Experts: Having the necessary financial documentation ready when you talk to a Shoprate Home Loan Expert will speed up the mortgage process.

On Shoprate.com, you can find exclusive loan options for people with special financial situations such as being self-employed or paid on commission. Your Home Loan Expert can answer any questions you may have, and help you determine what documentation you will need for your specific situation.

Just like when you show proof on insurance when buying a car, you have to have homeowner's insurance to verify that you will have sufficient coverage on the property when getting a mortgage. Homeowners insurance covers any damages that may affect the home's value.

Title insurance protects a buyer against any errors in the title of the property. Having a copy of your title insurance will help verify the legal description of the property, the taxes, and the names on the title.

As soon as you have begun the loan process, your Home Loan Expert will let you know exactly what documentation you will need to get approved.

In order for us to be sure that you are able to make your mortgage payments, we need to see proof that you have a source of income. You will usually be required to show original pay stubs for the last 30 days. You may also show two years' worth of W-2s, a verification of employment for two years' worth of tax returns. Your Home Loan Expert will explain what type of proof of income you will need to show.

The W-2 forms will help your lender verify that you are employed and will show your income history. When you apply for a mortgage, Shoprate must access your credit report to know how credit worthy you are as a borrower. The higher your credit score, the more likely that you will qualify for a larger loan, better loan options, and/or a more favorable interest rate. In order to access your credit report, we will need to know your Social Security number and date of birth.

The purchase agreement is the contract between homebuyer and home seller that defines the terms and conditions of the sale. It is possible to get approved based on your income and asset information, but having a signed purchase agreement makes the process faster and easier.

If you want to qualify for a mortgage, you need to be able to show that you have some money for the closing costs. Acceptable sources of funds may come from other homes with equity, a savings or checking account; proceeds from the sale of a house; stocks, bonds, mutual funds, a 401k or a money market account; or gift funds. For some home loans, you may need to show statements and/or investment records for these accounts.

The earnest money deposit is a deposit made by a buyer towards the down payment in evidence of good faith when the purchase agreement is signed. The deposit becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal.

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