Your Home Loan Application Checklist

Applying for a mortgage loan can be one of the most important financial decisions of your life.  To ensure that your home buying experience is as seamless as possible, below is a compilation of helpful advice for a successful application process from KNOWAtlanta magazine.

Your Home Loan Application Checklist

Verification of Income:

  • Tax Returns & W-2’s (from the past two-three years)
  • Current Pay Stubs (two most recent months)
  • Residency and Employer Addresses (past two years)

Additional Income:

  • Current Award Letters/Certificates of Eligibility (social security, veteran’s benefits, interest income and rents received)

Alternative Documentation:

  • Bank Statements (12 consecutive months)
  • Cancelled rent checks, utilities and other proof of recurring financial obligations (in lieu of an established credit history)

Verification of Assets:

  • Bank account numbers and branch addresses
  • List of all investments (savings bonds, stocks, 401(k) and their market value

Verification of Debts:

  • Other debts not noted on your credit report (car loans, furniture loans, student loans, personal loans, cosigned installment loans, creditor addresses and phone numbers)
  • Other Mortgage Statements (account numbers, customer service phone numbers, balances, monthly payments, creditor addresses and signed copies of sales contracts)
  • Child Support or Alimony payment documentation
  • Credit cards (monthly payments and balances)
  • Bankruptcy Papers or Divorce Decrees (if applicable)

 

Homebuying Hang-ups Caused by Bad Credit

  • Inability to get a loan, higher interest rates, larger down payment

What You Need to Qualify for a Home Loan

  • Enough money for the down payment (3 to 20 percent of the purchase price)
  • Two years of steady employment (same job or field)
  • Good (not perfect) credit score
  • Income two to three times higher than expected mortgage payment

Increases Homebuying Power

  • No debt, large down payment, good credit, duplexes with rental income

Decreases Homebuying Power

  • Big debt, small down payment, bad credit, single-family homes with no rental rooms

Homebuying Costs

Upfront Costs:

  • Down Payment:  3-20 percent of the home’s purchase price
  • Closing Costs: 1-8 percent of the purchase price
  • Miscellaneous Costs:  $250 – $800 for loan application fees, credit report fees, professional home inspections and appraisal costs

Monthly Costs:

  • Mortgage Payment: No more than a half or third of your monthly income (including taxes and insurance)

Now is the time to take advantage of record home prices, low interest rates, and large inventories of homes available for purchase.  Contact Mark Lackey at Atlanta Housing Source (404-886-8789) to view homes for sale in Gwinnett, Cobb, Forsyth, and North Fulton.

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