Getting Ready to Apply for Your Mortgage

What to Know Before Applying for Your Mortgage

What you need to have in hand for that mortgage application meeting

Learn what you should know before applying for your mortgage, such as the materials you need to bring, the information you need to know about your finances, and a checklist that will help you ensure you have a hassle-free application meeting.

Materials You'll Need To Bring...

To ensure a smooth and efficient application session, be sure that you have the following materials and documents with you:

  1. Your Contract of Sale. This is the formal agreement between you and the seller which contains the terms and conditions of the sale. Be sure it is signed by all necessary parties, including your co-borrower, if applicable. If you have not yet found a property, it's always best buyer practice to get pre-approval prior to looking at properties.
  2. Your Most Recent Pay Stub. Again, if you have a co-borrower, be sure to have his or her most recent pay stub, also. Pay stubs must include your name or social security number, your employer's name, and must be no more than 30 days old. If pay stubs are not available, a copy of your most recent W-2 form (wage and tax statement) may be substituted.
  3. Tax Returns from the Last Two Years. These are only necessary if: a) you or your co-borrower is self-employed (we'll need both personal and corporate returns); b) you wish to include Income from a source other than salary -such as interest, dividends, commissions, rental properties, trust fund, notes receivable, alimony, etc. If you or your co-borrower include alimony as a source of income, we will also need a copy of your divorce decree.


Information You'll Need...

They may not require that you provide documents pertaining to the following, but be prepared to talk about:

  1. Outstanding Loans and Credit Cards. We'll need to know the following facts for all of your financial obligations. a) your account number; b) the name of the financial institution or other creditor; (such as a department store, credit card issuer, etc.) c) your current total balance owed: d) the amount of your monthly payment: e) the number of months left to pay.
  2. Savings, Checking or Investment Accounts. This includes the following information for each account: a) your account number; b) the name of the financial institution; c) the appropriate balance or value.
  3. Real Estate You Currently Own. We'll need to know the following about each property: a) the approximate market value; b) the outstanding loan balance; c) the amount of your monthly payment; d) the amount of your monthly rental income (If applicable).
  4. Other Kinds of Property You Own. We'll include the value of life insurance, automobile, and other personal property on your application. We'll need to know the following about each item: a) the net cash value of life insurance; b) the make, year, and market value of autos: c) the value of furniture or other personal property. If you or your co-borrower owns a business, we'll need a current financial statement to determine net worth. You should also be prepared to pay the cost of your appraisal, the credit report and any other fees which may be required. If you do not already know what these costs are, please call your account executive.

Application Checklist

Use this checklist to make sure YOU have everything you need for a speedy, hassle-free application meeting:

  • Contract of Sale 
  • Pay Stubs and W-2 Forms
  • Tax Returns from Last Two Years (If self-employed or using Income other than salary to qualify)
  • Information Concerning All Outstanding Loans and Credit Card Balances
  • Information About your savings, Checking and Investment Accounts
  • Information About Real Estate You Own

Be prepared to pay the cost of your appraisal and credit report and any other fees which are required. For any additional questions, contact Big Rapids Realty, Inc & Reed City Realty, Inc today!