Have you ever considered what happens when applying for a mortgage? It can be a complicated process and can take longer than you imagine. However, getting the necessary documents and the right education will help make the process shorter.
Applying for a mortgage is not just approaching a loan officer in Nashville, telling him or her the amount of you need and by when, completing a request form, and then going home with an approved application.
Here are three important documents you may need to take with you during your mortgage application:
Proof of Income
Your lender needs to know that you can pay back the loan. You need to show your sources of income, business documents if you are self-employed, or your pay stubs if you are employed. The lender also requires confirming that your income is stable and that you are not engaging in an illegal business.
Income Tax Returns
It is the responsibility of every citizen to pay taxes to the government. Your lender will also confirm that your income is enough to afford the monthly installments. Here, your income tax returns will make an excellent resource.
List of Debts
Now that the lender knows how much you earn, they need to see how much money you owe other people, and if there will be a substantial amount to sustain your lifestyle and pay the loan from the remainder. This document will also help determine your debt to income ratio and assess your creditworthiness.
Knowing what to expect during a loan application makes the process easy and less troublesome. Not all lenders will need all these documents. Nevertheless, securing them will be a great way to show a loan officer that you’re serious and committed to getting a mortgage.