You’ve found a home that suits your needs. It meets your preferences, your budget, and the seller has accepted your offer. What’s the next step? To apply for a loan, of course!
GATHER REQUIRED DOCUMENTATION
Depending on the lender you choose, you may be able to apply in person, by phone, or online. Your lender will require you to submit information about yourself and anyone else who will be listed as a co-borrower on the mortgage (such as your spouse or partner).
Both you and your co-borrower will need to submit documentation to your lender. This is to provide proof of employment history, creditworthiness, and overall financial situation. Before completing an application, you’ll want to ensure you have these 6 things:
- W-2s (for the last 2 years)
- Recent pay stubs (covering the most recent 30 days)
- Complete bank statements for all financial accounts, including investments (for the last 2 months)
- Signed personal and business tax returns (all pages and relevant schedules)
- If self-employed, a copy of the most recent quarterly or year-to-date profit/loss statement
- A copy of the signed Purchase and Sales Agreement
Depending on what type of loan you are applying for and your individual circumstances, your lender may require more documents that those listed here. You can also expect your lender to ask you details about your employment and financial history. With your permission, your lender will also run your credit report as part of the process.
Take your time filling out the application. Be as accurate and upfront as possible. Failing to disclose credit problems or holding back requested documents will only delay the process and possibly prevent mortgage approval.
LOCK IN YOUR RATE
Consider locking in your interest rate. Interest rates tend to fluctuate frequently, so it is completely possible for that rate to chance between the day you apply for you loan you close. To protect yourself against this and ensure that the loan terms you used to build your budget are locked, talk to your lender about locking in your rate when you fill out your loan application. A rate lock, or rate commitment, means that your lender will give you assurance that the interest rate and discount points are guaranteed until the rate lock expiration date. The lender will provide the terms of the rate lock to you in writing, including the agreed-upon interest rate, the length of the lock and any discount points you choose to pay. However, if you believe that interest rates will decrease in the near future, it makes sense to wait before locking in a rate.
APPLY ONLINE AT STONEBRIDGE MORTGAGE
For professional assistance with mortgages, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. If you’re ready to apply for a loan and want to go through the process online, Stonebridge Mortgage Group offers online applications. We also help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and are in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!