Mortgage Application Tips #5: Required Information

We briefly mentioned some of the things that you may need to bring with you before you start your application, but here is a more detailed list of the information mortgage lenders will use to consider your loan application.

For all loans:

• Social Security Number, for borrower and co-borrower if any
• Employment History for the last two years, employment dates, addresses, salary.
• Current pay stubs or W-2 forms.
• Check and Savings Accounts and Certificates of Deposit. Location of bank accounts, account numbers and balances, address of bank if out of town, last 3 months' statements.
• Stocks, Bonds, and Investment Accounts.  Broker's name and address, description of stocks, bonds, etc.  Last 3 months' statements or copies of stock certificates.
• Life Insurance Policies. Insurance company, policy number, face amount, cash value, if any.
• Retirement Plan. Approximate vested interest value. Copy of latest statement.
• Automobiles.  Make and model of automobiles, their resale value.
• Other Assets.  Market value of personal and household property
• Liabilities and Other Non-Mortgage Debt. Creditors names, addresses, account numbers, monthly payments and balances, other income information you may need.

If you're self-employed you'll need two years tax returns, profit and loss statements, both company and personal if separate. Current balance sheet and profit and loss statement if more than two months into the new fiscal year, signed by CPA.

If you have income from any of the following, you'll need two years' personal federal tax returns:

• Commission
• Overtime
• Bonus
• Partnership
• Rental Property
• Trust
• Notes Receivable
• Interest/Dividends

If employed in family business, you'll need personal federal income tax returns and all schedules for the past two years.

If divorced or separated:

• Complete executed divorce decree and settlement agreement
• Payment history of alimony/child support over the past 12 months, if it is a financial obligation.
• If you choose to have this be considered as part of your income (you don't have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.

If you own real estate you'll need the name and address of all mortgage lenders for the past 24 months, account numbers, monthly payments and balances

If you've sold your home but not closed you'll need a copy of the sales contract.

If you've sold your home, closed, and you will use the proceeds for your new down payment you'll need a copy of the HUD-1 Uniform Settlement Statement.

If you rent you'll need the name, address and phone number of landlords for the past 24 months.

If you're buying a home you'll need purchase sales contract or offer to purchase and all addenda. Furnish contract with original signatures of buyer and seller.

If a source of your down payment is a gift, you'll need  the name, address and relationship of donor. Gift funds will be verified in both the donor and recipient's accounts. Note: Not all loan programs allow gifts to be part of your down payment.

For FHA Financing, you'll need evidence of Social Security Number and photo identification.

For VA Financing, you'll need your DD214 and Certificate of Eligibility.

For Construction/Perm Loan, you'll need signed construction with cost breakdown, builder plan and specifications.

If you have any questions at all about the above information, we would love to help you! Call us at 877-828-8851 and we can get you on that path to homeownership! Remember, this is what we do everyday. While this process may seem a bit daunting to a first time buyer, we want you to know that we have your back. We will get you through this as quickly and easily as possible!

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Mortgage Application Tips #2 - Proving your Employment and Income

Last week we discussed the basic information that you would need to bring with you in order to begin filling out your mortgage application.  Among those things is proof of your employment and income. These are very important things to lenders. Your ability to make the monthly payments on the mortgage and to afford the costs associated with owning a home are vital to the approval process.

Things to prove:

• At least two years employment history. We will want to know all about your job including your employer's name and address, your job title or position, length of time of the job, salary, bonuses, commissions, and average overtime pay.
• Recent one full month's paycheck stubs and Federal W-2 forms for the past two years. Keep in mind that you might also need to show full Federal tax returns if you own rental property, are self-employed or are commission based.
• Records of dividends and interest received from investment.
• If you are self employed, we will need full tax returns and financial statements for two years. Also, you will need to have your profit-and-loss statement for the current year to date.
• A written explanation for any possible gaps in your employment record. This may be due to illness or layoff or other circumstances.
• If you are relying on income from other sources, proof of this will be needed. This may include rental property, Social Security, disability payments, child support, etc.

Once we have all that information, we will have you sign a general credit authorization, which will be sent to your employer to verify that everything you told us is true. We may also do this over the phone. Remember to bring all of those things and we will take care of the rest!

If you have any questions or would like our help in getting this process going, we can be reached at 877-828-8851.

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Mortgage Application Tips #1 -The Basics

Are you planning on purchasing a home soon?  When applying for a loan or a mortgage, there is a lot of information that you will need to fill out the forms. You can't get the loan until you are approved and that can be a very intense process for some. We are here to make it more simple for you.

Here are the basics of what you need to know prior to starting the loan application process:

Be sure to gather all of your information together in one place so you have it easily accessible. This includes your personal finances, your bank account numbers and their balances, your current loan amounts and payments, and your credit card account numbers. Also bring your employment and financial history, and forms of identification such as your driver's license and your SSN card.

You will need all the information possible about the property that you are wanting to purchase as well. This includes a complete copy of the sales contract for the property, a set of plans if the house is to be built, the mailing address, age and legal description of the property, and contact info for your real estate agent who will assist in the appraising process.

You may be asked to bring more information than this, but these are the most important to get your application started.

More information is to come in our next blog post. Please check back again soon to learn more!  If you have an immediate question, feel free to call us at 877-828-8851.

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How To Apply for a Home Loan

Is your family growing? Are you tired of renting and would like to own your home? Now would be a great time to buy! Once you find that perfect new house, next comes applying for a home loan so you can officially purchase it. To do that, there are a few things you will need first.

1.) Check your credit score. In order to apply for a loan, your credit will be checked to ensure that you are reliable about paying your dues. Importantly, having a good credit score can actually help you save money sometimes if you qualify for a lower interest rate and a lower monthly payment.

2.) Know exactly what you can afford. Make sure the house that you are aiming to buy is truly within your budget. Aiming too high can put stress on you and your wallet, even if you qualify for the loan. Your debt-to-income ratio will be taken into consideration.

3.) Pick the right mortgage. We can help you decide between a Fixed Rate or an Adjustable Rate, and whether you want it to be short term or long term.

4.) Call Crosscountry Mortgage today and we can help you get started on your loan application. We aim to suit your specific needs so that you are happy with your loan and you can afford it.  (877) 828-8851

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Record or Near-Record Low Mortgage Rates!

The economy is still gradually improving day by day, and that may mean that you are making more money now. Or maybe not. If you are in need of lower monthly mortgage payments, now would be an excellent time to refinance!

Just this week, the fixed mortgage rates have once again dropped! In fact, the 15-year average rate hit a new record low of 2.56%!!  The 30-year record low mortgage rate is 3.31% and the current rate has dropped down to 3.35% which is almost as low as it could be!

As mortgage professionals, we want to take the time to encourage you to seek more information about refinancing your home. Right now is a great time to take advantage of the low rates! The economy is strengthening and the rates continue to fall for the 5th consecutive week.

"Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast. The latest GDP report confirmed that the housing sector has become an important contributor to the economic recovery,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term."

Take a look at this mortgage rate chart (brought to you by Freddie Mac).

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The Mortgage Relief Act Extended One Year!

We are happy to report some good news on the mortgage front! The Mortgage Forgiveness Debt Relief Act has been extended through December 31, 2013. Congress recently passed a bill called The American Taxpayer Relief Act of 2012 that extends dozens of tax cuts. What does this mean for you?

If you've found yourself drowning in mortgage debt, you still have a chance to do something about it. This Act allows homeowners to have their debt forgiven through a short sale or a loan modification without being taxed as income.

For a full list of all the tax extensions, visit this website.

If you are worried that your mortgage is becoming too burdensome, you can take other measures to relieve your household. Call Quest Loans for information on refinancing your current mortgage. The mortgage rates are low! 888-883-5252

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