Beginning a new year is always and exciting time for resolutions and planning. Planning is the best way to have an easy and successful mortgage transaction.
With the Government controlling the mortgage industry making sure you paperwork is in order would be your first objective. There are several things you might not know that you need to have in order to be approved for a loan.
- If you owe debt to the government like IRS or Student loan debt, these debts must be current and in an acceptable payment plan in order for your loan to be approved.
- All of your Federal Income Tax filings must be up to date.
- If you have deposits going into your bank account, be sure they can all be “sourced”. Cash apps like The Cash App, Venmo, etc. make tracking those cash deposits nearly impossible.
- If you know you are applying for a mortgage in the near future avoid any unusual deposits to your accounts. Lenders are required to verify and source all funds used in a mortgage.
- Your income will also need to be verifiable. If you are self-employed or on commission, you will need to have your most recent 1-2 years of complete income tax returns available. If you are salaried a paystub and W-2 will usually suffice for documentation.
- If you have other sources of income, keep in mind you will need to provide documentation to support the use of the income for qualifying. (For example: SS Awards letters, retirement statements, child support and alimony require the order and documentation of receipt for a specific amount of time depending on the loan type.)
- Keep your paperwork in order and meet with a lender in advance so you can be fully prepared and make your new home purchase (or refinance) experience and easy one!
Happy New Year!
Kerry
Kerry Gaby | Residential Lender
SmartBank
4004 Norton Lane Suite 104, Tallahassee, Florida 32308
850.701.0319
kerry.gaby@smartbank.com
