Mortgage shopping can be a difficult process. The various lenders you will meet with will all want a long list of documentation when you are being considered for a mortgage. You may need cable ties just to bundle up the long list of documents that your lender will want to see. Having these documents ready should make your experience easier.
First a bank will want to verify your income. They want to verify that you will, in fact, be able to afford payments on your home. In order to prove your income you must be able to provide W-2 forms, pay stubs, and tax returns from the previous two years. You must also provide documentation to show any additional income that you may receive through social security, work bonuses, interest on investments, government benefits, or earnings from a stake in a business. If you are self employed, like Oakville dentists, you must provide documents showing the profit of your company.
You will need to provide documents that can verify all of your assets. This includes details on all of your bank accounts including recent account statements. You will need to include any accounts that your name is on, including joint accounts. You must provide a list documenting any stocks, bonds, active exchange traded funds or other investments that you currently hold and you must list their market values. You will have to provide the title to any property (houses, land, vehicles) that you own.
A bank will want to see documents regarding your purchase of the property. It's not enough to simply say you want to buy a condominium for sale in Toronto, Ontario, your bank wants to be reassured that you will actually be purchasing the home that you say you will be. The needed documents should include a ratified purchase contract. If you have made a deposit on the property, include a copy of this as well.
Finally, you bank will want to know about all of your debts. You should have copies of all your recent credit card bills and documentation regarding other consumer debt (car loans, lines of credit, student loans, etc.). You should have documentation showing any current rental or mortgage payments that you are making. You must inform them of any properties that you are making payments on, whether they be your home or Richmond, VA houses that you purchased as an investment. If you are paying alimony or child support, you should include supporting documentation. |