Buying a home in Stamford, CT 06902, is a journey that begins with many steps. You may begin your home search on-line and find the home of your dreams. But you want to make sure that this home won’t break the proverbial bank. The best “first” step towards home-ownership is to meet with a reputable lender and understand your spending power and a identifying aprice range you can comfortably afford. 
Before stepping into the loan office, here is a list of the documents you’ll need to make this path an easy one. You can help when applying for a mortgage or getting pre-qualified by collecting the following documents. Here is a list of items needed on all home loan applications. Providing these documents will allow your mortgage specialist to give a thorough review and prevent surprises in the middle of the home loan process.
You'll need:
· Last 2 years of tax returns, all pages
· Last 2 years of W2 forms
· Last 2 months of bank statements, all pages. Even if the last pages are blank
· Last month of recent consecutive pay stubs
Loan underwriters will review the tax returns in their entirety. They look for other obligations that may not come up on a mortgage application. An example could be a rental property that has a negative rent roll. This will affect what the bank can approve you for, regardless of a base salary from your employer.
The last 2 years of W-2s give a history of what you’ve earned from a company. Banks like to see consistency or an increase in income. If there is a decrease in any way, a letter of explanation may be requested. This is to insure the decrease is not likely to continue.
All banks have practices they must follow. Loans are audited to ensure they’ve followed these practices. Reviewing bank statements will ensure the monies going into a transaction are truly from the borrower. Any large deposits that are out of the ordinary will require explanation. An example, is if you are a salaried employee who gets a consistent direct deposit. If you all of a sudden have a $10,000 deposit, an underwriter will request explanations. Was this a wedding gift? Maybe you’ve inherited money from a relative. What a great windfall you have. However you’ll be required to provide an explanation for gift/large deposit. These are part of anti-money laundering practices banks have instituted within the last few years.
The last month of consecutive pay stubs are requested to make sure that you are on track to consistently make what you have been earning with your employer. The pay stubs are also reviewed to see if there are any curtailments not listed on the application. A curtailment could be child support and/or alimony payments that are taken directly from your pay stub.
Pay stubs and bank statements should not be 30 days or older from the time of submission. These documents have expiration dates. You do not want to submit a document and have it expire in the middle of the process. This can affect your loan approval which can affect your down payment. Therefore it’s best to provide the most recent documents.
There may be more documents that are needed for your particular transaction. For advice about what is needed for a mortgage application, please contact my trusted Sr. Mortgage Specialist Jay de Castro, NMLS #625145. He’s been in the business for 10 years and can certainly explain what is needed and the reason why it is necessary. You may reach him via text/ cell 203.962.3278 or email, jay.a.decastro@chase.com
If you are ready to begin your home search, please feel free to contact me directly, via email: kimberlytapscott@kw.com or via cell/text: 203-252-8327 and we'll get you on the path to home-ownership.
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