NEWS OLD

Do Your Mortgage Lenders Really Need to Know So Much About You?

When you apply for a mortgage, it may seem like your mortgage lenders are trying to learn every single thing about you. But why?

If you have ever applied for a mortgage, you’ll know the myriad of questions that mortgage lenders will ask you. If it is your first time, you may be surprised as to the barrage of questions. Are they trying to create a clone to replace you? Sci-Fi fantasies aside, these questions are not meant to frighten you, they are meant to create a picture of your financial background to determine the probability of you paying back the mortgage in full (plus interest, of course). It is natural to feel uneasy and unsettled when handing over such important and personal documents, but it’s all part of the process of becoming approved.

What Your Banker Will (Likely) Ask For

  • Bank statements from the previous two months.
  • List of assets so that the banker knows you have enough to fall back on in the event of an emergency.
  • Last two tax returns. If you own a business, you will have to provide both the personal and your business returns.
  • 1099 forms if you are self-employed.
  • If you are a renter, canceled rent checks along with the landlord’s contact information so the lender can know if you pay reliably.
  • Credit report.
  • Pay stubs to prove salary.
  • A letter from all who gave you money to go towards your down payment or closing costs stating they do not expect you to pay them back.
  • Photo identification.

Your mortgage lender wants to know a lot about you to find you the best mortgage possible. And if they can’t, then maybe you are not ready for a mortgage just yet. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you!