Several Things You Need to 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 speed up the financing and also make the life a lot easier. You need to organize your papers into three-ring binder or the file system. You don’t need all of the documentation listed below. But, when you are able to gather more information, then you can get the most excellent loan rates. Remember that these documents may not all be required for all the kinds of loans.
When you like to purchase your first house or other investment properties to build wealth, then this is the checklist that can surely help you save money on the costs of the loan. One would be the proof of income. You need to add copies of the last two pay stubs and other proof of employment and income verification. If you are getting fixed income just the same with the trust income or the social security, you need to add a beneficiary letter stating how much you will be 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.
When you are self-employed, you must show a copy of the business license for two or three years in order to show that you have been in that business for at least two years. If you don’t have these, you must show whatever you do to have an evidence that you are in this business for at least two years. You should also be asking the CPA to have the income returns amended for the past two years and write the letter verifying that you have been self-employed for around two 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. You may need financial business statement which is prepared by the accountant when you have a business.
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. You just need the last two months’ bank statements in many cases. So many of the lenders will just need 12 months bank statements when you try to get a full doc loan with the best rates instead of the stated income for the self-employed individuals. Also, you must talk to the loan officer when the 12-month bank statements are going to help you obtain better rates.