Saturday, November 10, 2007

The power of information

Everyday we need information and we give information in all aspects of our life. We need to make sure we have all the information and that it's correct. When you talk to a Loan Officer about a home loan there are specific and basic pieces of information you will need. If you go prepared the loan application process will be so much smoother. You will need your ID, drivers license, passport or equivalent, and social security card. Your most recent pay stubs covering a one month period and past 2 yrs W2's. If self employed you need your past 2 yrs tax returns with all schedules. Most recent 2 months of bank statements, if you don't have a bank account now, you need to go open one up. Your money for closing costs, down payment and reserves needs to be documented as to where it came from, so get an account opened today. If you have a 401K through work bring the most recent statement or any life insurance policy with a cash value will also be good. If you have CD's, money market or a trust be sure to have all that information for the LO to be able to verify with a verification of deposit, VOD. If you pay or receive child support bring the divorce decree or child support order. Landlord information or if you live with family you will need those names and addresses. You will also need to bring a check for your credit report as the LO will pull your credit while you are there and be sure to review the whole report to be sure all credit good or bad is yours. If you have paid collections or tax liens or judgments in the past they may very well still show up on your CR as those places say they will report the payment to the credit bureaus and they rarely do, so also keep all your documentation and information of paying these things for the future.
Yes a lot of information is needed to buy a home, but the end result of home ownership a very rewarding feeling. So be prepared and the whole mortgage loan application will not be as painful as you have heard.

Remember: Information is knowledge

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