Got these tips today from Andy Aucoin at Essential Mortgage.  Read all the way through.  When you are thinking about buying a house, the first step is to get pre-qualified.   We will find you the house that you want to buy.  Follow Andy steps below to understand what is next!  

From Andy: 

Here is a shorter list of items needed once you are ready to proceed with a pre-approval, NOT a pre-qualification, but an actual approval. Also, please make sure you read the Do’s and Don’t list below the checklist.

 Documentation REQUIRED for loan application:

 

It’s better to have it and not need it than to need it and not have it!

 

***Green highlights are needed to get me started on a preliminary approval for your loan. 

**Red highlights are needed once you have an executed purchase agreement. 


o    ***Most recent paycheck stubs from the last 30 days.

o    ***W-2 statements and 1099’s for last two years on all borrowers.

o    ***Last 2 years SIGNED tax returns – ALL pages, ALL schedules, K-1’s etc. (personal & corporate if applicable)

***If self-employed YTD P&L may be required. The tax returns requested NEED to be the ones submitted to the IRS.

o    ***2 most recent bank statements on ALL accounts- ALL pages even if blank. ALL Large deposits must be sourced

ANY DEPOSITS OTHER THAN PAYROLL WILL NEED TO BE DOCUMENTED?

o    ***Most recent quarterly statements on savings, 401k’s, stock, CD’s etc. (ALL pages)

o    ***Legible copy of driver’s license (s) For FHA, VA, Bond and RD, I also need social security cards.

 

Other information needed once you have a contract and or a refinance:

 o    **Name & phone # of your Homeowner’s Insurance Agent?  ______________________            

If you have any questions, please email me at [email protected]               

These documents are needed back ASAP to be able to start the process for approval.

***Important Note: Please be prepared if we happen to ask for additional documentation or clarification once your file has been processed and submitted. Your patience will be deeply appreciated by all of us.***

 

Pay Particular Attention to These Tips:

THINGS to DO and THINGS NOT to DO

Please carefully read the items below. If ANY of it pertains to you, please let me know upfront so that we can plan accordingly and not be surprised down the road when it may be too late. Many of the items such as credit, income, assets and employment WILL be verified again after loan approval. Better safe than sorry. Pay very close attention to how you sign the initial disclosures and final doc’s at closing. It needs to match your signature on your Driver’s License.

If you have ANY 2106 un-reimbursed business expenses on your tax returns, it is important for me to know early!

DO keep ALL accounts current (mortgages, credit cards, auto loans etc.)

DO contact me anytime a questions or concern arises.

DO keep copies of ALL paperwork with ALL pages of everything pertaining to your loan.

DO make sure to make ALL payments on ALL accounts on or before the due date.

DO have patience with me. It may seem that I am asking for your life history? I am only because I have to.

 

DO NOT make ANY large deposits into your bank accounts WITHOUT proper documentation.

DO NOT quit your job for any reason. Please call me to discuss any changes that may occur to your employment.

DO NOT allow anyone to make an inquiry on your credit report during the process of your loan.

DO NOT change Banks or transfer money within your accounts. If you do, a paper trail will be needed.

DO NOT co-sign for anyone, period.

DO NOT purchase a vehicle of any kind or take on additional debt.

DO NOT purchase any other real estate.

DO NOT apply for credit anywhere or complete any other credit application.

DO NOT charge any additional debt on any credit cards. That includes appliances, furniture etc.

DO NOT start any home improvements that are not a condition of your loan.

DO NOT max out your credit card limit. See below.

 

Factors that influence your credit scores are as follows:

  • Payment History (35%)

Delinquent payments can have a major impact on your scores.

First time delinquency can drop a score 100 points or more.

  • Amounts Owed (30%)

Higher credit utilization will negatively impact a credit score

  • Length of Credit History (15%)

The longer the history, the higher the score.

  • New Credit (10%)

High number of inquiries in 12 months is negative.

  • Types of Credit Used (10%)

Higher percentage of secured (versus unsecured) credit is better.

 

 

Andy Aucoin

Mortgage Loan Originator

NMLS# 83261 * NMLS# 80850

Essential Mortgage Company

3029 S. Sherwood, Suite 200

Baton Rouge, LA 70816

Phone: 225-297-7741

Direct Fax: 225-236-9133

Cell: 225-485-8433

Email: [email protected]

Apply on-line: www.essentialmtg.com

 

So, hope this helps clear up some of the confusion on getting your loan approved.  Call The Pat Wattam Team at RE/MAX First today and we'll help you get on the road to home ownership!