Loan Application Checklist
When purchasing a home, you will need to formulate a loan application check list. Your Denver real estate agent should help you become familiar with this process and your loan officer can help to finalize any further questions you may have. The loan application process is basically a checklist of all the documents and other items you may need during the home-loan procedure. Below you will find the loan application checklist in detail, which will help you understand the loan course. This list will assure that every step has been taken in order to close on time.
The Basics
When applying for a home loan, the very first important piece of information will be the documentation regarding your income.
A Borrower with a base salary will require:
- The previous two year W2's
- Most current paycheck stub
A Borrower who is a commissioned or a bonus Borrower will require:
- Previous two year tax returns
- Most current paycheck stub
A Borrower who is self employed will require:
- Most recent year-to-date financial statements
- Most recent profit/loss statement
- Balance sheet
- The previous two year personal/partnership, S-Corp and/or corporate tax returns.
All parties will be responsible for their asset and liabilities, which include the past three months:
- Checking
- Savings
- Money market accounts
- Retirement accounts
- Any brokerage accounts
- Any other financial accounts
Information from your creditors is also required. You must provide the loan officer with any names and addresses of your creditors. This will include your monthly payments and account numbers. The loan officer will also ask that you provide any outstanding balances of the below:
- Mortgage loans
- Personal Loans
- Student Loans
- Credit Cards
- Auto Loans
- Any other miscellaneous loans you may have
Other Information that may be required
There are other pieces of information that will be requested upon the application process such as your home address (previous 2 years) and the address of your mortgage holder or landlord's name. You will also be required to present the following information:
- A copy of your divorce decree (if needed) or any other separation agreement
- Any earnest money cancellations.
- Check to cover credit report and appraisal costs.
- A copy of your purchase contract and listing agreement if you are selling your current home.
A home loan application requires a lot of information and this information may take a little bit of time to gather. All of this pertinent information will help the loan officer to understand your financial standing and determine the payment that will be suitable to you. Keep in mind you will also be financing other costs for your Denver real estate agent and other closing costs. This will add to your monthly mortgage amount. This is one reason why it is important to provide all the information you have regarding your finances.
