The Different Things You Should Prepare for Real Estate Mortgages
Aside from the credit score as well as other qualification you should meet to be able to finance a real estate mortgage loan, you should have the papers and documents. You can certainly speed up financing and make the life easier. You need to organize your papers into three-ring binder or the file system. Also, you don’t need all the documentations listed below. If you can gather more information, you will be able to get the best loan rates. Remember that these documents may not all be required for all the kinds of loans.
When you are going to purchase your first house or other investment properties for building wealth, then this is the checklist that can really help you save money on the loan costs. One would be the proof of income. You should add copies of the last two pay stubs or other proof of employment as well as income verification. When you are receiving fixed income just like the trust income or the social security, then you should add a beneficiary letter that states how much you are getting. For one who is self-employed, you need to prove that you have been in the same business or line of work for two years or more.
If you are self-employed, then you should show a copy of the business license for up to three years to be able to show that you are in such business for the last couple of years. When you don’t have these, then you must show whatever you do to have evidence that you have been in such business for two years the least. You may also ask a CPA to have the income tax returns amended for the past 2 years and also write a letter that verifies that you have been self-employed for at least a couple of years.
You should also show tax return for the last two years of two years of W2’s or 1099s when you don’t want to disclose those tax returns. If you are self-employed, the mortgage company may require personal and business tax returns for the past couple of years and the company’s updated profile and loss statement. When you have a business, you may require financial business statement prepared by the accountant.
The bank account records are also needed. You need to gather the account numbers and the address of the bank branch as well as the checking or savings account statements for past two months or one year. In so many cases, you may need the last two month’s bank statements. Many of the lenders will just need 12 months bank statements if you are trying get a full doc loan with the most excellent rates rather the stated income for the self-employed individual. Also, you must talk to the loan officer when the 12-month bank statements are going to help you obtain better rates.