The whole process of getting a mortgage can be long and confusing at times, we at Woodcrest Mortgage want to make the entire process easier for you. That’s why we created a step by step guide that will lead you through all the mortgage basics from application checklist to foreclosure.
If you have additional questions after reading the instructions, feel free to call Woodcrest Mortgage, because we are here to answer all of the questions our clients have about a mortgage process.
This is an unavoidable part of getting a mortgage because lenders need to make sure the borrower can afford the payments by checking a borrower’s income and other financial documentation. When it comes to tax information, mortgage lenders are likely to ask for W-2 forms from the past two years for each applicant. If no copies are available, you should check with your employer or ask the IRS for a copy of the documents submitted with your tax returns. A written explanation may be required if there are unemployment gaps within the last two years.
Did you know that checking your debt obligations will enable lenders to calculate your debt-to-income ratio? They’ll want to make sure you have enough assets to be financially stable after paying the down payment and closing costs associated with the mortgage. That’s why on the mortgage application, you’ll list all monthly debt payments (such as student loans, credit cards, auto loans, and any existing mortgages) and assets (such as bank and investment accounts). Keep in mind that you may be asked to support these debts and assets with documents.
Get quick answers to the most common questions homebuyers ask. Our FAQ section is designed to help you understand the mortgage process, explore your options, and feel confident every step of the way.
You’ll typically need proof of income, tax returns, pay stubs, bank statements, a list of debts and assets, credit verification, and any additional documents related to your financial situation. Self-employed borrowers may need extra items like profit-and-loss statements or 1099s.
Lenders review your recent pay stubs, W-2s, tax returns, and bank statements to confirm your income. They also pull your credit report to check your score and review your payment history. You may be asked to explain any late payments or unusual activity.
A home appraisal is an unbiased estimate of a property’s value. Lenders use it to ensure the home is worth the amount you’re borrowing. This protects both you and the lender from overpaying for the property.
Closing costs include lender fees, appraisal charges, insurance, taxes, and other transaction expenses. They typically range from 2% to 5% of the loan amount. Your lender will provide a detailed breakdown of what to expect.
