Loan Application Information and Checklist

For many buyers, applying for the mortgage loan is one of the more stressful aspects of buying a home. The loan application need not be a stressful time. By following a few easy steps, you'll sail through the loan application process.

1. Make a list of any questions you have about the loan program.

   Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify, including the advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages.

2. Decide if you want to lock-in or float the loan's interest rate.

   Locking-in the rate means that the lender commits to the mortgage interest rate for the loan - typically at the time the loan application is submitted. By floating the rate, you can lock-in the interest rate anytime between the loan application day and closing. Buyers opt to "float the loan" when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates may rise, increasing the mortgage payment.

3. Decide if you want to pay additional points to lower your interest rate

   Typically you can elect to pay additional points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.

4. Gather your paperwork

   The following paperwork is required for your loan application:

   • Copy of most recent two (2) years W-2 statements
   • Copy of pay stubs covering the last (30) thirty days
   • Copy of most recent monthly bank statements
   • Copy of most recent statements on 401K, IRA, or Mutual Fund Accounts
   • Copy of most recent brokerage statement for any stocks, bonds or certificates of deposits (or copies of actual certificate)
   • Copy of the purchase agreement
   • If you are currently renting: either 12 months canceled rent checks or the name and address of your current landlord
   • If divorced: a fully executed divorce decree
   • For a refinance: a copy of the mortgage deed, and most recent fire insurance declaration page
   • For self employed borrowers, employed in sales, paid by commission, or owns rental real estate: two (2) years signed personal tax returns - including all schedules. If self-employed through a corporation, last two years corporate returns as well as a year-to-date profit and loss statement and balance sheet

   Different programs require varying amounts of documentation. The loan program you select may require more or less documentation. Please contact us for a free, no-obligation consultation.