Congratulations – Homeownership is getting closer! You have made it to step # 2 of the home buying process the Mortgage Loan Application.
You have already completed step # 1 of the home buying process, talking to a licensed loan originator.
If this is you are a first time home buyer, your loan officer has already sat down with you and shared a rent versus buy analysis.
You have now made a wise decision to take the next step towards home ownership and building wealth.
You are probably feeling excited, nervous, and have lots of questions.
Don’t worry this is normal.
I have worked with dozens and dozens of first time home buyers over the past 18 years and assure you that the jitters you are feeling are common.
During the loan application process you will discover what you can expect in terms of a mortgage interest rate, payment, and approximately how much home you are qualified to purchase.
Home Buying Process Step # 2 –
Completing The Mortgage Loan Application
This begins with completing the loan application.
It takes less than 10 minutes to complete and you will start off filling in your personal information.
Name, address, date of birth, and social security number.
You will need to provide a complete 2-year living history as well as a 2-year work history.
It helps if you provide the company name, address, phone number, and dates of employment.
Next is to provide your monthly income as well as how much money you have in the bank.
NOTE: For mortgage loan purposes we need your income before taxes.
You can calculate this yourself or you can estimate your income and provide your loan officer a copy of your pay stubs.
To calculate your income as an hourly employee you simply multiply your hourly wage by the number of hours worked in a week.
Then you multiply that by 52 (number of weeks in a year) and divide by 12.
So assume you make $20 per hour and work 40 hours a week.
20 x 40 x 52 divided by 12 = $3,466.67 monthly income.
If you receive a salary you simply divide your annual salary by 12.
NOTE: If you receive a bonus, commission, or overtime you will need to have a 2-year history of doing so in order to use this income for qualifying.
As lenders we take a 2 year average of this type of income.
Work two jobs?
You will also need a 2-year history of working 2 jobs.
Self-employed buyers will need to provide 2 years of tax returns (all pages and schedules) and possibly a year to date profit and loss statement.
Items needed for mortgage loan application
A good loan officer will go beyond just checking credit.
Having good credit is important but this is only 1 piece of the loan process puzzle.
A good loan officer will make sure to calculate income and verify money to close in an effort to ensure you have a smooth home buying process.
Have credit issues? Don’t worry, I can help with that as well. CLICK HERE for more info.
To save time and simplify the process make sure to have the following documents ready for your loan officer:
+ 2 recent paystubs
+ 2 recent bank statements for accounts being used in the transaction
+ 2 recent years tax returns and W2’s
+ Copy of drivers license (front and back)
You will finish out the loan application by answering a few questions.
Have you filed for bankruptcy?
Have you ever filed for a foreclosure?
Are you delinquent on any federal debt?
Do you have any judgments or liens against you?
Are you a U.S. citizen or Permanent Resident Alien?
Have you had ownership in a home in the last 3 years?
Next step is to review the information provided and submit the loan application.
I utilize a platform that allows my clients to complete the application on their mobile phone or on a computer or tablet.
This platform also allows you to upload the documents listed above into an encrypted loan portal to save you time.
CLICK HERE to apply and see for yourself.
Avoid these common mistakes people make when purchasing a home.
DO NOT apply for new credit until after the home purchase is complete.
DO NOT make any large deposits or withdrawals without first consulting with your loan officer.
DO NOT pay down credit card balances without first consulting with your loan officer.
DO NOT quit or change employers without first consulting with your loan officer.
DO NOT miss any payments or have a late payment.
Have additional questions and want answers?
CLICK HERE to find a time on my calendar that works for you
Homeownership In Virginia Or Maryland
Rod Ferrier is a licensed loan originator in Virginia and Maryland. NMLS# 203976
He is a U.S. Navy Veteran, father of four, and began his career as a loan officer in 2002.
He specializes in assisting his clients to navigate the winding road of homeownership. His clients include Veterans, first time home buyers, families looking to purchase a bigger home, as well as empty-nesters seeking to downsize.
His background in financial planning provides his clients with the opportunity to benefit from the wealth created by strategically purchasing the right home.