How Do I Find a Mortgage Lender?
That’s a great question. In today’s Mortgage market you need to be more informed then ever before. That said, let’s get started. I have put together a step by step guide that you should follow for the best success. This includes tips and tricks from a Mortgage Broker, and the best way to accomplish each step.
First things first!
Get your documentation in order before you shop for Home Loans. Figure out if you are are Self-Employed, receive a W2 or a 1099. If you are a W2 employee, congratulations, you will have the easiest time getting your documentation together. You need the last two years W2′s, and your two most recent pay stubs.
Tips for W2 employees
1. If you have changed jobs in the last two years, and you have two years W2′s for your current employer, but one is incomplete, bring the W2 from your previous employer as well. Make sure you disclose that you have only been employed for 1.8 years with company A, and .4 years with company B. Don’t just say you have been employed for 2 Years with company A, and hope the underwriter does not notice the difference in income (they will, and it will cost you more work down the road.)
2. If your company has changed names, get the documentation you need up front to prove it. A letter from your HR department explaining the name change usually covers this. If you don’t, the underwriter will definitly inquire about it down the road, again slowing down the process.
3. If there is any gap in employment, you need to be able to verify it. Maternity leave, sick leave, etc. Usually a letter from HR will suffice here as well.
If you receive a 1099 or are Self-Employed, you will need the last two years tax returns. You will need to qualify based on the average income over the last two years. You will need to be 1099 or Self-Employed for two years in order to qualify for Mortgage. Also, if you made $65,000 two years ago, and $32,000 last year, you are usually in trouble. That is usually grounds for the underwriter to issue a decline (Check with your Mortgage Lender).
Tips for 1099, and Self-Employed borrowers
1. Make sure you have all pages of your last two years tax returns. If you are missing just one page, the underwriter will condition for it, and this will slow the process down.
2. Never submit false tax returns. Every Self-Employed borrower is required to sign a 4506-T form. This form is sent to the IRS, and your tax returns that you submit are verified. If there is any discrepancy, you will be declined, or have to jump through quite a few hoops to get the loan back on track, and maybe even have to lock in different Mortgage Rates.
You’re ready; go shopping for a Mortgage Broker.
This is were most people make a mistake. They decide they want to buy a house, and they go shopping for Mortgage Rates. That is a bad move, and here is why. Anybody can advertise a low rate to lure you in, and then when you are ready to buy, change it. They can tell you rates went up, your credit does not qualify, the program was discontinued, etc. So instead, go shopping for a reputable Mortgage Broker, Mortgage Lender, Loan Officer, etc. Once you do that, the low rates will follow; you actually shop for the best Mortgage Rates when you are ready to lock, and try then have your Mortgage Broker match the rate (or at least explain the rate). Once you have been pre-approved, start looking for your house.
Find your house with a Realtor, They are FREE!
Yes. Real estate agents work for you for free, and charge the seller. It is one of the few things in the world you can get for free, so you should take advantage of that. Give them the details of what you are looking for, along with your pre-approval letter, and they will find you properties to look at.
Apply for Home Loans; find low Mortgage Rates
This is when the fun starts. You need to have all of your documentation in line, and make sure you disclose any issues you may have. Like, child support, alimony, judgements, liens, etc. If you know of something that may be a problem down the road, disclose it. When it rears it’s ugly head later, you could be in trouble and waste a lot of peoples time. You know your past issues, let you Mortgage Lender know up front. When it is time, do a little research online to find average Mortgage Rates in your area. This will keep your Loan Officer honest, and help you get the best Interest Rate you can get.
Tips
1. Over document. If there is anything out of the ordinary, get as much documentation as you can to explain it. Job gaps, debt that is not on your credit, judgements, liens, bankruptcy, foreclosures, anything that needs to be explained, over explain. It will save you time in the future.
2. Anytime you need to use bank statements, bring the last two months, and make sure you have all pages. Even if page 5 is blank and only says “page 5″, bring it. If you do not have the bank statements that were sent to you in the mail; you need to have someone from your bank stamp, sign and date each page. SO, if you print your statements of from their website, you will need this to be done. Also, if there are any large deposits, usually over $1,000 your Mortgage Broker will need you to explain them, and it must be a valid explanation.
Ready to start the pre-approval process? Fill out my Mortgage Quote, and I will get in touch with you in a flash.
Keywords: Mortgage Broker, Mortgage Rates, Mortgage Lender, Home Loans
