Verifying Your Down Payment, Use my Application Checklistto gather the documentation requested by most lenders. A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower. Down Payment & Closing Costs Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan. Take extra care to document the sources for any monies to be used for the down payment or closing costs. Acceptable Down Payment & Closing Costs Sources Assets Collect information about your personal assets that add to your net worth and help to prove your credit worthiness. Common Assets Considered in a Mortgage Loan Application Stocks, bonds, mutual funds, 401(K) and retirement accounts Life insurance Personal property estimate - cars, boats, antiques, jewelry, etc. Other real estate or property Income and Employment The lender will want to confirm your current gross income and have evidence of stable employment. Documentation requirements vary depending upon a number of factors - including the source of income (hourly, salary, salary + bonuses, salary + commission, commission, self-employed, etc.). Debts Your lender will want to review a list of all your current debts. This along with your credit report will provide the lender with a snapshot of your obligations. The lender will want to confirm that you will not be overextended when the mortgage payment is added to your current debt load. Potomac Mortgage Group, LLC is licensed by the Virginia State Corporation Commission under license number MC-5403
Closing Costs, Assets, Income and Debts
William Raveis Real Estate - New Haven, CT
www.CTProperty.com, Connecticut Luxury & Waterfront Realty
Great checklist. How far back do people need to go when compiling that information?
Mar 01, 2011 03:50 PM
Retired - Kirkland, WA
Phil Leng - Retired
Good information. What we do all the time, we think is routine. But to a first time buyer, who has never done this before, it is all scary and daunting. Nice way to lay out the information.
PHil
Mar 01, 2011 10:27 PM
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.
Thanks for the checklist...you always have very helpful information and marketing that we can use. Love it!
Mar 02, 2011 03:13 AM
MVB Mortgage "A Potomac Mortgage Group Trademark" - Friendship Heights, DC
MVB Mortgage
Thanks All!! if you email me directly at rross@PotomacMortgageGroup.com I can send you a very specific "Purchase checklist" that I send to all of my clients. I know you will find it very useful.
Mar 02, 2011 06:10 AM
Comments(4)