Five Things You Need To Obtain A Mortgage Loan

Getting a mortgage loan for your first home may seem to be a daunting task, but remember that millions have done it and continue to do it – it is not impossible, especially if you know what items you will need and can start gathering them so that you aren’t left scrambling at the last minute. Organization can take a lot of stress out of your goals of home ownership, so start early and keep dedicated folders of the documents you will need. Always check with your loan agent, but this is a good general idea of things they are looking for.

Five Things You Need To Obtain A Mortgage Loan

  • tax documents such as W2s
  • Pay stubs from the past three months
  • Bank Statements from past three months
  • Photo ID
  • Good credit

W2s are usually mailed to your home in January of each year, but in the case they are not, you can also request them from the HR department of places you have worked. If you are still employed at the same place, most places have online self-service where you can print your own W2s. It’s a good idea to get in the habit of keeping these anyway, in case your tax returns are ever audited.

You should also keep your paystubs for the previous three months. If you are paid electronically and not receive paper paystubs, you can print these from your work’s online databank. Be sure to ask your supervisor what the procedure is and where they are located.

Bank statements are usually mailed to your house every month, so try to keep those. If you don’t, however, you can usually request copies from your bank.

You need a valid state-issued Photo ID, usually a Driver’s License. If you don’t drive, you can still get a photo ID through the state that authenticates you the same that a driver’s license would. Your lending company will make a copy of your photo ID.

The final thing you need is good credit – generally anything over 680 – 700. It’s possible to get a mortgage with rates in the 640s, but you will be paying a much higher interest rate. Get in the habit of paying your bills on time, keeping your credit card balances low, and do not close lines of credit even after they are paid off. Allow them to sit dormant with zero balance. This will build your length of credit history. Be sure to frequently view your credit report to see what is on it and that everything is correct. Mistakes can be destroy your credit and are more common than most people think.

It can seem intimidating to apply for your first mortgage, but if you are prepared with the documents you need, you will find the whole process much smoother. Happy house hunting!

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