The ABCs Of The Mortgage Loan Process
The mortgage loan process as a whole can be quite a burden, but it doesn’t have to be. With proper preparation, the application loan process can be simplified, easing the amount of related stress. For starters, be sure to have the required documentation ready to be faxed upon request by the mortgage lender. You will also need to make copies of the following documents in order to process the home loan itself: (scroll down for list)
» Declaration of the Insurance Policy of Home Owner
» Driver’s License
» Social Security card
» Documentation of Promissory Note (first mortgage)
» Copy of monthly statement on first and second mortgages
As a borrower, you will also have to provide accurate documentation of income. For hourly wages or salaries, you will need to make copies of your original W-2 for the past two years, copies of a month’s worth of original paycheck stubs, showing the year-to-date amount of earnings.
For self-employed individuals, you must supply a copy of your federal tax returns for the previous two years, an accurate and precise year-to-date statement pertaining to your personal profit and loss, copies of bank statements from the past three months, and if applicable, a copy of the original W-2 or 1099 for the previous two years.
If you are retired, you should provide copies of your social security letter, along with copies of 1099s for the past two years.
For rental income, you need to make copies of the rental agreement for every property, and tax returns for the last year.
For all income that does not fit into one of the above categories, such as child support, alimony, and separate maintenance, you are required to provide a one-year receipt history, bank statements for three months, and if applicable, a copy of the divorce decree.
California Mortgage Loan Process
For assets, the lender will need the three most recent bank statements for all accounts.
For purchase loans, the lender will ask for a copy of purchase contract, along with a fully documented rental history for the past two years for first-time home buyers.
The real estate loan process in California is more complicated than for a simple home loan. Contact a commercial mortgage lender to find out additional information on the loan mortgage process application. For a California home equity loan, the loan process is fairly standard and is less complicated than a residential loan.