A professional real estate agent will help negotiate your offer, and then turns you over to a loan officer to obtain financing. I reached out to AnnMarie Brink, a local, experienced, licensed mortgage loan originator with U.S. Bank, to answer this question.
Whether it’s your first home purchase or your fifth, get ready to provide a slew of documents to your lender. Much of the information that you will be asked to provide is required by law and is intended to help protect you as the buyer (as well as the seller). Having this paperwork already in hand, will reduce your stress and speed up the process. Here are some of the documents you should be prepared to have at the ready for all borrowers:
* Bank statements for two months
* Tax returns for the last two years with all schedules
* W-2 statements for two years
* Your last 30 days of pay stubs
* Documentation such as a lease agreement, divorce decree or marriage certificate to verify residence if you have changed your address or name
* Sources of large deposits, assets sold, retirement account proceeds or gifts used as evidence of income or assets
The loan officer may ask you to sign additional documents if there’s information on your credit report that shows a different address, date of birth or another Social Security number is being used by a co-borrower or co-signer.
Your lender will ask you for assistance if there are large deposits that aren’t from payroll or unclear information on a paystub. The lender needs to verify where a large deposit came from to fully process your loan application. More documents may be needed to show you have your down payment and the ability to pay closing costs.
Remember, your lender isn’t working against you, just working for you! He or she wants to make sure you have the ability to afford the new debt you intend to take on.
Once you provide all this verification, your loan application is turned over to an underwriter, who reviews that information and occasionally will ask for additional information to complete the process.
Most of all, pace yourself and keep your eyes on the prize—your beautiful new home.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to firstname.lastname@example.org or AnnMarie.Brink@usbank.com. NMLS# 651215. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.