Various Things You Must Prepare for Real Estate Mortgages
Aside from the credit score as well as other qualifications that you should meet to finance the real estate mortgage loan, you must have the papers as well as documents. You can certainly speed up financing and make the life easier. You should organize the papers into three-ring binder or file system. Also, you don’t need all the documentations listed below. If you can gather more information, you will be able to get the best loan rates. Remember that these documents may not all be required for all the kinds of loans.
When you are going to purchase your first house or other investment properties for building wealth, then this is the checklist that can really help you save money on the loan costs. 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 receiving a fixed income just like the trust income or social security, then you need to add a beneficiary letter which states how much you are receiving. For one who is self-employed, you should be able to prove that you have been in the same line of work or business for two or more years.
If you are self-employed, then you should show a copy of the business license for up to three years to be able to show that you are in such business for the last couple of years. If you don’t have such, then you should do whatever evidence you have that you are in this business for at least two years. You can also ask a CPA to amend the income tax returns for the past two years and write a letter which verifies that you have been self-employed for at least a couple of 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. When you are self-employed, the mortgage company may need personal as well as business tax returns for the past two years and the company’s year-to-date profit as well as loss statement. If you have a business, then you may need financial business statement prepared by the accountant.
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. You should also speak with the loan officer if the 12-month bank statements are going to help you get better rates.
Source: Kansas City mortgages