What You Don’t Know…

What you don’t know can’t hurt you? That very old saying has often been converted to “What you don’t know CAN hurt you” in modern times. The original proverb documented by the Oxford Dictionary of Proverbs shows the relationship between a level of knowledge and the likelihood of something happening as early as in 1576.

Knowing what you need to complete a mortgage application in 2019 might take more time because home loans require more documentation than they did a dozen years ago. What are the basics to start gathering such documentation?

• Two years minimum of tax returns; be prepared to sign a Form 4506-T which allows the lender to receive a copy directly from the IRS.
• Proof of income; W-2s and 1099 forms, direct deposit records can best show your financial earnings.
• Bank statements and other assets such as insurance; if you have a down payment that is in a bank account, the lender may look at how long it has been in your account or require an explanation of how you developed it.
• Credit history; the lender can pull your credit report with your verbal or written permission.
• Photo ID; this is necessary to prove that you are who you are saying you are.
• Renting history; for those who don’t already own a home, many lenders like to see proof that you can pay on time. A lender might ask for canceled rent checks or a letter from the landlord.
• There may be other documents depending on the individuals own situation that could be requested in addition.

Because so many documents are electronic and require verification beyond simply having a paper copy, it’s easy to learn what the timing is for gathering these documents when you meet with your mortgage advisor first.

Want to know the specifics of documents required for you? Please email me at MPattullo@PeakMtg.com

We lend where we live,

Michael Pattullo
Peak Mortgage
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com
360-607-9312