Shopping for a mortgage lender is very important and having a mortgage specialists on standby who can hold your hand through the process and walk you through it step-by-step is invaluable. Going through the process with a mortgage specialist that listens to you and answers your questions makes the process of applying for a mortgage for the first time much easier. Click Here to Get the Robb Realty VIP Buyer's Booklet
Ask plenty of questions
If you’re meeting with a mortgage specialist and they start talking about something that you do not fully understand, don’t hesitate for an instant to stop them and ask what they mean or what that specific term means. That mortgage specialist will be able to explain it in simple terms for you. There is no such thing as a stupid question in situations like this and asking a “stupid” question will not affect your mortgage in any way. Good mortgage specialists understand that first time home buyers are going to come in the door without a lot of knowledge about mortgages, and they’re trained to explain everything clearly right off the bat.
Don’t stress out about the amount of paperwork
Why do mortgage lenders need so much stuff, anyway? The simple answer is legal requirements. Lenders are legally required to document every element of their reasoning for why they chose to offer you a mortgage.
Gather basic documents before applying
The lender will provide you with a list of documents they want up front, so be prepared. Be sure to keep copies of all documents you provide them.
Documents you will need:
- Clear proof of identity, such as a driver’s license or, even better, a passport.
- Copies of your recent tax returns — the last three years are a good starting point.
- Recent pay stubs from your employers, which proves your current employment and current rate of pay. Bring copies of the last three stubs.
- Recent statements from your bank accounts, showing how much you have in those accounts. Bring copies of the last three statements.
- Recent statements from your retirement accounts, showing how much you have saved for retirement. Bring copies of your last three statements.
Having those documents in hand right off the bat will keep them off of the to-do list that the mortgage specialist will give you after your initial meeting.
Be honest about your financial history
You may have a strong desire to avoid mentioning or even to cover up things in your recent financial or employment history that might mark you as a less-than-optimal candidate for a home loan. Here’s the truth: the lending institution is extremely likely to find those things out anyway and being upfront about them gives you an opportunity to put a positive face on them and tell your side of the story. This is particularly important if you are meeting with a financial institution that does manual underwriting, meaning that an actual person looks at your financial and professional situation to determine what mortgage offer you’re eligible for.
Almost all of us have blemishes in our credit history and our employment history. Trying to hide them does you no favors because those blemishes will likely be discovered when they pull your credit report or look into your employment history. You are far better off being upfront about them.
Are you ready to list your home or start the pre-qualification process in buying a new home? The Robb Realty team of agents and preferred lenders are here to help. Robb Realty website