While the process of applying for a mortgage can seem like it comes with a lot of very challenging scrutiny, all that research we do into your situation is meant to ensure you get the right loan for you.
From ensuring there’s a good chance you’ll be able to make your payments to finding the most favorable rates you qualify for, it takes a lot of effort.
To help give you an understanding of what we’re looking at as we walk through this process with you, here’s a list of some of the factors we’ll check during the application process. From verifying you have enough income to cover the payments to showing any assistance you get in making the down payment is a gift, not a loan, here’s what we’ll look at:
Everyone knows checking your credit history is an important part of applying for any new debt or credit. In this step, we’ll look at information from the credit bureaus that includes your payment history, the number of loans you’re already carrying and other factors that are part of assessing how well you handle debt.
We’ll do this a few ways. First, we’ll need you to bring in proof of certain types of income, such as a W2 from the preceding year and documentation of other assets you might have, including IRAs, stocks, bonds and mutual funds. Additionally, we’ll ask you to complete a Form 4506-T that enables us to request your recent tax returns from the IRS.
This can generally be achieved by you providing recent pay stubs or other proof of payment, but we may also need to verify this directly with your employer(s).
If you have existing debt, we’ll need to know about that to help ensure you don’t get in over your head with the loan you’re applying for. You may need to document that debt, but we’ll also be able to verify it using your credit report and other sources.
Down Payment Source
If you can’t show you have the money for the down payment you’re making, we’ll need you to provide a gift letter from the person or persons giving you that money. In most cases, the down payment can’t come from a loan, so you’ll need to show the money is coming with no strings attached.
This list includes only a few of the factors your Journey Home Lending partner will check as we work to ensure we get the best mortgage for you. If you’re ready to start the application process, give us a call today!