Home Loan Approval

Steps to Get a Home Loan Approval

If you’re looking for a home loan approval to take advantage of this year’s tax credit. Here are a few quick tips for obtaining your Home Loan Approval.

The more things change, the more they remain the same. It is nonetheless a good bet to start early.

Here are a few quick steps to put you in the best position for your home loan approval.

Step 1: Check your credit history.

This probably could be step #1. Go to annualcreditreport.com and get a free copy of your report. As a reaction to being perhaps a little too soft on credit before, the mortgage industry is being incredibly tough on credit today. Unfortunately, many people have inaccurate items in their credit report and don’t know it. Use the free annual credit report dot com site to get your copy in advance.

Step 2: Organize your employment and income information

When applying for a Home Loan Approval a lender will ask for documentation to support a your current and previous employment. Lenders will request copies of 30 days worth of pay stubs, and tax returns and W2′s for the past 2 years. If you have paperwork prepared in advance, your loan will be underwritten faster and with less problems.

Step 3: Organize asset documentation

Underwriting will require copies of 2 months (or 60 days) checking and savings bank statements, investment accounts, retirement accounts and/or gift documentation to be able to complete a Home Loan Approval.

Step 4: Identify properties that fit the guidelines of the loan program you are seeking

The Home Loan Approval process will also include a review of the subject property being purchased. The lender will want to know to if you will be buying a single family residence, a 2- to 4-unit property or a condo. The condition and the appraised value of the property will dictate the Home Loan Approval outcome as their guidelines are different for the various property types available in the marketplace.

Here is a summary of the paperwork you’ll ultimately need for an approval on your loan:

  • most recent two pay stubs
  • last two years W-2 forms
  • If you’re self-employed or a commissioned sales person, lenders will want to see the last two years 1040 tax returns with ALL accompanying schedules. Sign all copies where you would normally sign the original
  • most recent two months bank statements (all pages), documenting the down payment
  • most recent two month securities accounts statements. Lenders will only “credit” 70% of the value of that account
  • most recent account statement for an IRA or 401-k account. Lenders will only credit 60% of the value of that account.
  • copy of the dicorce decree if you are divorced
  • copy of your driver’s license, passport, or social security card (two out of three)
  • If you plan to use a gift, from a family member, for the down payment, the documentation needs to be REALLY complete. We need a gift letter, signed by both the donor and recipient, a copy of the cancelled check (from the gift), and two months bank statements from the donor, documenting that they owned those funds for 60 days, prior to the gift.

The Good, the Bad, and the Ugly of a Bankruptcy Home Loan

When you are bankrupt, you have no easy way of securing a home equity loan. Your bad monetary situation and the black mark you got from the recent bankruptcy compel lenders to treat you as a less likely candidate for a loan. Even within this backdrop, if you follow the right advice and build your credit worth, lenders should not neglect your application for a bankruptcy home equity loan or a bankruptcy home loan.

The main aspect you have to work on after bankruptcy is finding ways to regain your credit worth to an acceptable level. This is vital as banks and lenders check your credit with credit bureaus before lending a bankruptcy equity home loan. If you maintain a healthy bank account and a credit card without misconducts and delays, you will reach the position you were at earlier on after about two years.

Avoid paying minimum rate to your credit card and pay cash somewhat higher than the required minimum rate and be careful to deposit it every month in time. If you have a permanent employment at one place for over a year it will also help you to gain the confidence of the lenders. Normally, interest rates for home equity loans are a little bit higher, but still considerably lower than what is paid for other types of loans.

Sometimes, you may not have a clear idea what options you have to get a loan, due to overworking yourself to raise your credit ratings. Get a loan broker if it is the case, as they know how to find a lender and all other tricks and tips of the trade. Your true bankruptcy situation should be revealed to the broker when contacting him as it helps the broker when discussing with a lender for a suitable bankruptcy equity home loan

plan.

But, some people do not like brokers interfering in their work. If you feel this way, you can find good lenders or financial institutions through the web that give home equity loans to those who are bankrupt. But the difficulty comes when you see many such websites on the Internet and you may wonder how to go about contacting a genuine one, as it is not an easy task. The only way is to research, inquire and get information relevant to a website before filling in its online application as sometimes these lenders have hidden charges, interest rates and agendas that may lead from the agreement to foreclosures.

Home Loans – Some Simple Tips

When you are looking for a home loan in the area of San Diego, you need to know the process, even if it has to do with refinancing. Here are some things you should know about the process:

• When financing or refinancing a home loan, you will need to show documentation that will verify your employment status, your credit situation and your financial situation. These documents will be used to help investors so that they will know if you have the ability to pay them back. Documentation can include tax returns, pay slips, banks statements, employment certificates, appraisals, purchase agreements, and any other information that will be asked of you.

• You will next need to undertake a complete loan analysis or an application that you need to fill out with someone or an organization that can help you. It’s best that you have a financial advisor to help you out. The financial advisor will be the middleman between you, the borrower, and underwriter. The underwriter is just the person who will see through the documentation and info that you provide. That person will really dig to make sure that you have all the requirements needed.

• Home loans in San Diego will often take time, two to four weeks to be exact. It can also take longer than that. This all depends on the situation that can include the investors needing more information or documentation. This is particularly true with people who have poor credit. Just make sure you complete all requirements and you should have your application approved.