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Proper Planning for Your Mortgage Application

From Dean Hartman,

With good preparation, most things are easier. That works in mortgages too! Today, I want to give you some ideas that can make your mortgage experience less painful.

Income Items:

  1. Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well as a month’s worth of pay stubs.
  2. Be prepared to explain them. Deductions in your returns and your pay stubs may impact the income your lender will use to qualify you which, in turn, has a big impact on the loan you will get.
  3. Have a breakdown of base pay versus overtime for both your pay stubs and 2 years’ W2′s. Lenders treat overtime (and bonus income) differently than your base pay. Be prepared to explain any changes over the last few years because your loan officer will ask you about it.

Asset Items: 

  1. Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
  2. You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
  3. Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
  4. If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).

Credit Items:

  1. Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
  2. Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
  3. Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.

When buying a home, remember the Boy Scout motto, “Be prepared”. Following these suggestions will make your loan approval easier and less stressful.

Mortgage Rates for February 7, 2012

Below you can see the mortgage rates from February 7, 2012.  
Please click the image below to view additional mortgage rates. 

These rates are provided to you by HomeServices Lending.  Semonin Realtors® is not a mortgage lender; please contact HomeServices Lending directly to learn more about its mortgage products and your eligibility for such products.

What Were Some of Your Best Decisions in 2011?

As 2011 winds down, we think it would be interesting to take a look back and reflect on some decisions you have made this year.  In all your decisions ~ big or small, involving others or only yourself ~ what were some of your best decisions?

• Did you decide to spend more time with family and less time working?

• Did you choose to buy a new house?  Or sell your home?

• Did you make a point to embrace a new hobby or learn a new skill?

• Did you decide to take on a healthier lifestyle and/or diet?

Speak up: what is one (or some) decision you have made this year that you are especially proud of?

Mortgage Rates for October 4, 2011

Mortgage Rates for August 2, 2011

Check out this week’s average mortgage rates.

Be sure to click here to connect with a qualified Home Mortgage Consultant.

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