There always seems to be a hang up somewhere in the mortgage process around what documentation is needed to get the loan fully approved. Either people are ill prepared for the process or there are extenuating circumstances. Let’s take a look at how to avoid all of that, you can be prepared ahead of time with doing a few things as you begin to consider purchasing a home.
- Make sure that the last 2 years of taxes have been filed with the IRS on time and if any money is due that it has been or a payment arrangement has been made. IF you had to pay money then you will need to provide proof that you did so.
- If you have to bring money to closing for a down payment or closing costs those funds need to be verified in the account from which they are coming. IF the funds to close are gift funds then your lender will need to know that ahead of time.
- You will need to be on your job for a minimum of 30 days and have received paystubs covering those 30 days of employment. There are certain exceptions to this but you will want to disclose a recent change of employment to you lender so they can guide you through the best way to address your particular situation.
Often, less is more, in the mortgage industry, that is untrue. The more information that you can give your lender ahead of time the less likely you are to run into any snags throughout the process. Full disclosure is the way to go and allows for a smooth process all the way around.