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by Adohr Milk Blog

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Before you apply for a loan, put yourself in the lender’s shoes. You’re about to sign
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Appraisal of property , An appraisal is performed on the home you want to purchase by an independent contractor. The fair market value of the home is estimated based upon the condition of the home, the neighborhood, and other factors. When applying for a loan, you’re borrowing a certain percentage of the total property value.

Assets and income Your assets and income are verified and calculated. All available funds you have, including income, equity and bank accounts, are considered against your loan application. Can you
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Down payment The more money you are able to put down the lower the monthly payments on the loan itself. Down payment sizes vary with loan type, but the rule of thumb is generally to pay the most you can up front to decrease
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Credit history You should be familiar with your credit history. This is what lenders look
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If you don’t already have access to your
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2. What’s required to apply for a home loan?

The next
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3. Loan application checklist:

Required for Loan Application:

1. Copies of the home purchase sales contract or offer to purchase, including all relevant documentation signed by both buyer and seller. This can include the initial loan application and declaration of purpose for loan.

2. Home listing paperwork with details of the property for sale. Included should be an appraisal of the property by
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3. Your W,2 forms
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4. Your latest pay stub as well as any invoices for contract work.

5. Complete employment history for at least the last two years, including the name
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6. Your
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7. Complete bank statements covering at least the last three months for all checking, savings, money market or other accounts. Be sure to include addresses, bank account numbers and balances (generally present on the statements). Essentially
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8. A copy of your credit report. It’s easier to have a copy on hand
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9. Copies of your tax returns covering the last
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10. Records of stocks, bonds and investments. You may plan to use the value of your investments toward your home purchase. Be prepared to supply detailed documentation of these investments to your lender, including account numbers and serial numbers for bonds.

11. Latest IRA or retirement plan statement. The
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12. Copies of life insurance policies in place, including policy numbers, total value and information regarding insurance company contacts per policy.

13. Details on automobiles owned, including make, year, current market value and copies of title or loan paperwork if still financed.

14. Identify any outstanding construction loans with copies of the construction contract, cost schedule and plans with signatures present where relevant.

15. Provide letters stating value of monetary gifts if any of the payment for a home (including down and closing) is
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16. Documentation of
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17. Rental details including landlord contact information, your rental history for
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18. If you are self,employed, you must provide a balance sheet and a
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