Many prospective homeowners fail to realize that a mortgage application is one of the most important tests they will ever take. Because of this, they don't get organized or streamline the process - no studying, no research, nothing! But for applicants who want to nail their mortgage application, it only takes a little bit of preparation to improve lending potential and eliminate costly delays.
If you want to get your application approved and land the house of your dreams, don’t forget the essential paperwork, including:
- Credit Report. This documentation is probably the most important item when it comes to mortgage approval. Lenders are interested in evaluating your financial profile to see how safe an investment you are - they don't want to loan someone hundreds of thousands of dollars if there's evidence in the past of outstanding debt or out-of-control spending. If you can't provide proof of good credit, it's better to hold off on applying for a mortgage and spend a few months cleaning up that credit score so you can present a better profile to the lender.
- Employment History. Proof of employment is essential for a mortgage application, so keeping your work history well-documented will pay off big time. Even if you don’t have pristine records on hand, make the effort to print out all relevant material before you submit your application. It’s better to have too much than not enough.
- Tax Forms. It's a guarantee that any reputable lender will want to look into your federal tax history. Analyzing tax statements will allow the lender to assess the validity of your work history, earnings, debt payments, etc. This assessment is a fraud prevention tactic that is standard in the loan industry.
Contact Midland Mortgage to get more information about your mortgage application and some tips you need to get approved.