How to Best Prepare Your Credit and Financial Position BEFORE Beginning a Home Search, Part 1 ...

 

 

How to Best Prepare Your

Credit and Financial Position

BEFORE Beginning a Home Search

Part 1

 

 

 

   I won't lie to you.  The bygone era of planning and then starting your home buying search by just looking in a newspaper are long gone.  That's true in my Chicago/Chicagoland area ... or anywhere else across the U.S.

 

      Today, the planning and preparation for buying your home is far more detailed in nature than in the past.  Home buyers are called upon to be much more involved in their processing and much more organized with documentation than ever before.

 

      And their planning and preparation for buying their home needs to start long before actually beginning a property search.  And yes ... I would suggest even before searching-out a real estate agent.

 

   Much of the preliminary preparation and planning can be done by a potential home buyer on their own before seeking a pre-approval for mortgage financing, if following this guide.  I do however, promote finding a knowledgeable, experienced mortgage lender to help you through this preliminary process.  Most mortgage lenders will be happy to assist you throughout this period.

 

    (Note:  Should more severe credit issues need to be resolved, I strongly recommend immediately seeking-out the services of a qualified mortgage lender to guide you through the specifics of your credit repair.  Do this sooner than later, as the more time allowed for the repair process, the better.  Raising credit scores takes time.)

     

      I've now got you convinced to give this preliminary preparation a try, right?  Great!   So where do you start?

 

  Income

 

 

• Compile the last two (2) years of Tax Returns and W-2's or 1099's.  (Only the U.S. Returns are needed).  Please note:  That if any income is derived from a business or self-employed venture, the Corporate Returns will be needed from the most recent 2 years.
• If NOT self-employed, create a file folder to keep ALL paycheck stubs.  If paid by direct deposit, please know/learn how to retrieve or request the last 30 days of paycheck history online or from your employer.
• If receiving documentable income from alimony, child support, or other sources ... written confirmation will be requested.  Typically a minimum of three (3) months of documentation will be required, as well as proof of the length of time the income will continue (typically 3 years or greater).
  

 

 

Assets/Funds

 

 

• Checking/Savings Accounts:  Keep ALL bank statements and ALL pages of same.  The most recent two (2) months  (* 60-days of a transaction history/report) will be required at mortgage application.  PLUS, the next statement from the account that the Earnest Money Check was written from will be needed.  (If Earnest Money was donated, that money will have to be verified from the donor's account.  Same statements apply for the donor).
  
• *  If quarterly Statements, the most recent quarter ended will be required at time of underwriting.
• Stocks/Bonds/Mutual Funds:  Two (2) months (or the most recent quarterly statement) of most recent Statements will be needed.  Funds to be used for Closing will need to be liquidated (sold) and moved to a verified account to be deemed "available" come Closing.
• Retirement Funds:  Proof of statement indicating the name of the Borrower, name of the Fund Holder/Administrator, and the account number/balance.  If used at Closing, the terms of the loan or withdrawal, must be attained prior to Underwriting.  Funds to be liquidated MUST be tranferred into and documented as "available" in an already verified account.      
• Gift Funds:  Proof of fund transferred from the Donor to the Borrower(s) must be verified.  A GIFT LETTER form is needed.  It will be provided by the Loan Officer/Banker, for the Borrower.  A specific process must be followed, so please ... consult with YOUR banker.
• Cash/Coins:  Unverifiable and NOT Acceptable.  Consult with your Loan Officer/Banker well in advance.  

 

   

     Remember, the more of this preliminary documentation you have compiled and ready prior to starting your home buying and mortgage financing venture, the better.  It can mean the difference between navigating a smooth loan approval process or rough waters.

 

     Part Two of this blog ... will cover the topics of what CREDIT and DEBT you will required to verify during your upcoming mortgage pre-approval and application.  Please watch for the very important Part 2 to this post ...

 

 

 

    * Should you be in need of or seeking an experienced, knowledgeable mortgage lender in Chicago, Chicagoland, or elsewhere across the U.S., please contact me.  I'll put my 35 years of mortgage expertise and experience to work on your behalf ... prior, during, and after your mortgage process.

    I can be contacted for information and mortgage service at any of the following:

Direct:  815.277.4036   Cell/Text:  708.921.6331

Email: gmundt@thefederalsavingsbank.com

Website:  www.genemundt.com

Skype:  630.219.1316   eFax:  312.624.6738

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

 

 

 

                                    

     Gene Mundt, Sr. Vice President

Personal NMLS #216987

The Federal Savings Bank

1823 Centre Point Circle, Naperville, IL  60563      

                             

Now on Skype!   630-219-1316

www.genemundt.com

 gmundt@thefederalsavingsbank.com