In case you haven't heard, home mortgage rates are still at
historic lows. If you haven't taken advantage of these low
rates, the time to act is now.
You may be thinking to yourself about the horror stories you
have heard from your friends or co-workers. You know the
stories that people tell about how it took months upon months to
get their refinance done. Well, purchasing and
refinancing do take a little longer than they used to but it
shouldn't take months. The key is being prepared before you
begin the process of applying for your mortgage. Below are a
few tips to help you prepare for your first time home purchase or
the refinance of your existing mortgage:
1. Gather together all pages of your federal
tax return. Mortgage companies can't accept just the first
two pages. Unreimbursed employee expenses on Schedule A can
kill the deal if they are large enough. When using other
types of income, other than Wages (Social Security, Disability,
Child Support, Alimony, etc.) be prepared to document the history
of that income, and the continuance of that income for at least 3
2. Collect all pages of your last bank
statement (even if blank). Any deposits other than payroll
will need to be sourced and documented. Keep all paystubs and full
bank statements during the process, in case they are needed for
updating the file.
3. Self-employed individuals will need to
submit copies of their corporate returns if they own > 25% of a
business. They will also need to submit a Year-to-Date Profit
and Loss Statement for the current year if the current date is past
the first quarter.
4. Once the file has been submitted to
underwriting, mortgage companies need to get responses from
inquiries back from you as quickly as possible. The faster
they get the information back and to the underwriter, the quicker
the file is put back into the pipeline to be re-reviewed.
5. Please do not make any major purchases while
your mortgage is in process. There will be a soft pull of
your credit before the closing takes place and any new purchases
will have to be added and put back through underwriting.
6. Make sure that all second liens on property
are disclosed at application time to the Loan
Officer. Second mortgages are not always on the credit
report, and they can add a big surprise when they title search
7. A call to your Homeowner's Insurance Agent
informing them that you are planning on completing a refinance or
home purchase is a great idea. This step could save time with
the agent closer to your closing date when the lender is setting up
the new Mortgagee Clause, etc. and the insurance agent is trying to
reach the borrower for authorization.
Being prepared is the first step in assuring a speedy process
for your mortgage refinance or new home purchase. It is also
great to have a trusted mortgage professional. American
Gateway Bank has an experienced mortgage department and would be
more than happy to help make your house dreams a reality.
Should you have any questions, please visit our Mortgage page or
call us at 225.368.2500.