Wednesday, June 29, 2011

WHAT DOES IT TAKE TO GET A HOME MORTGAGE TODAY?




The question posed to me most often is, "What does it take to get a mortgage today?" My response is, "I am so glad you asked!"



We are lending money everyday but the ease of putting a little information on a piece of paper and going to the closing table is gone. Basically, this is what I will need to be able to submit:



INCOME




* 30 days pay-stubbs


*w-2's, 1099's and Federal Tax Returns for last 2 years all schedules


*Verification of Employment with income listed from the employer


*To be able to use two job income's, you must have worked both jobs for 2 years


*To use over-time income, must have a two year history and we would average over-time


*To use commissioned income, must have a two year history and we would average commission


*If you are a w-2 employee and have a side business where you write off income, these losses could affect your w-2 income as well.


*If you are self-employed or commissioned and you write off expenses these will also be taken off your income. In other words, if you are not paying taxes on the money, we can't use it.






ASSETS



*Last 2 months bank statements all pages for each account checking and savings


*Quarterly or yearly statement on 401k, IRA's, Stocks and Bonds if you have them


*Ability to source and season any irregular deposits or large sums of money


example: Mom gives you $5k for a downpayment, we have to be able to prove Mom had the money to gift you. We would need a signed gift letter and a copy of bank statement showing the money came from Mom's account.



EMPLOYMENT



*2 year work history


*Must have been in the same LINE of work for 2 years (not necessarily consecutive, unless it is commission or self-employed)


*If self-employed will need last 2 years business license plus the ability to verify online by phone number, website, blog etc.



CREDIT




*Credit is pulled at the beginning of transaction and at the end of transaction. If you have applied for credit, significantly increased your credit card balances, opened new accounts, bought a new car etc...it will show and we will have to do letter's of explanation, maybe the loan will have to go back to underwriting due to changes in debt to income ratio and last it could keep you from being able to close on your loan at all. If your debt to income ratio was already close and you added or increased a monthly payment you may no longer qualify for financing under guidelines.



*If there are errors on your credit report you will need to furnish the documentation to have these errors removed from credit report. Just providing proof it was incorrect is no longer an option.



If you have questions or would like for me to give you a free credity analysis and pre-qualify you to purchase a home or refinance your current residence, please give me a call. Valerie Springer 205-995-7283 x 305 or visit my website http://www.vshomeloans.com/



I am always "Yours to Count On"!



My name is Valerie Springer nmls 198479, Home Mortgage Expert and writer for Ask Val in Birmingham, Alabama. You may contact me by email at valerie.springer@benchmark.us or call 205-314-4775..