Monday, November 27, 2017

Preparing to Apply for a Home Loan

If you’re looking to buy a home at the Lake of the Ozarks, chances are you are going to need to finance the purchase. Applying for a home loan requires some preparation, and there are several documents that you will want to gather before starting the home loan process. Keep reading to learn how you can start preparing now. As your Lake of the Ozarks real estate agent, I'm here to help you every step of the way!

Income & Employment Verification 

In order to be approved for a home loan, you will need to provide information on your employment and income. If you collect a paycheck, you will be required to show your W-2 forms from the previous two years. In addition, you’ll be asked to show your most recent pay stub to show that you are still employed and are making at least the same, if not more, amount of money. If you own your own business, you will need to provide a profit and loss statement or 1099 forms. You will also be asked to provide your most recent federal tax return, and possibly the last two years’ tax returns. The lender needs to make sure you can afford your monthly mortgage payments.

Debt Information 

Another important factor in the loan approval process is the amount of debt you have. A mortgage lender will use your current debt information to determine the risk involved with lending you money. You will be asked to provide a complete list of your debts, such as credit cards, student loans, car loans and child support payments, along with minimum monthly payments and balances. Your debt-to-income ratio, as well as your credit history will be evaluated. These factors will be used to determine not only your risk level, but also what interest rates are available to you personally. The better your credit score, the better your rates will be.

Depending on your unique financial situation, additional documentation may be required for your loan application. Talk to a professional mortgage lender to learn more. As your premier real estate agent at the Lake of the Ozarks, I can recommended lenders that I've worked with in the past. For all your home buying needs, trust Eagle's Nest Realty!

Call (573) 374-0769 to schedule a showing today!

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