To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets.
In order to expedite the paperwork process, start gathering the following items:
- Most recent paystubs for one month.
- W2s from the last two years.
- Signed copies of your last two years' tax returns, including all schedules that were filed.
- If you are self-employed, a year-to-date profit and loss statement.
- Homeowner's insurance company name and number.
- Most recent bank statements for two months.
- Most recent statements from any retirement and investment accounts for two months.
Within 3 days of your application, your Loan Officer must provide you with a good faith estimate of closing costs. Along with any down payment, you will have to pay closing costs as well. This is a brief rundown of some of the fees that could be associated with your new mortgage:
- Application/Processing Fee – Charged by the loan officer to process your loan application.
- Appraisal Fee – Charged by the appraiser to determine the current value of the property.
- Closing Fee – Charged by the closing agency (escrow, attorney, title) to ensure the close of your transaction.
- Credit Report Fee – Charged by the credit reporting agency to provide your credit report to your loan officer and/or lender.
- Title Search/Title Insurance Fees – Charged by the title company to ensure the property is free from liens or title defects.
- Origination Fee – Paid to the originator to obtain a lower interest rate. This is usually expressed in the form of points. One point equals 1% of the loan amount.
- Discount Points – Paid to the lender to secure a lower interest rate.
- Miscellaneous Fees – VA and FHA loans may have other fees associated with them. Private Mortgage Insurance (PMI), document preparation, notary, recording and tax service are other fees which may fall under this category.
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