subject: Preparing For Your Mortgage Closing [print this page] Preparing For Your Mortgage Closing Preparing For Your Mortgage Closing
If you think that buying a car is a time consuming process with never ending paperwork, just wait until you try to buy a house. The level of work to be done and the time you have to wait is staggering. It can become quite the nightmare before it is all over, particularly when your loan officer calls the week you are scheduled to close and tells you they have a problem.
Taking time now to make sure you have everything they could possibly want will go a long way towards helping secure your new home loan and making sure your move in date is solid. Don't be caught unprepared; start assembling the following items today, before you rush headlong into the process. Pay stubs. Most mortgage brokers are going to require pay records from at least three months prior to the loan application. If you are self-employed or if your position is commission based, you can expect to be asked for up to a year's worth of salary records. Basically the bank wants to know how much you have coming in to determine if you can in fact pay for the house you are applying for.
If you are retired, you will need to provide proof of that income as well. Social security statements, pension documents, or 401K material will be good sources of info.
Bank account information. You should assemble statements for all of your bank accounts (checking, savings) for at least the past three months. Ideally, give them six months, just to make sure there are no unanswered questions.
If you are currently renting, the lender may require a copy of your lease or rental agreement. Don't be surprised if they contact your landlord and verify that rent has been paid on time. This is another reason to always be Johnny on the spot with your rent and other payments, because that record will come back on you when you are trying to purchase a home.
The lender will also need to verify your employment. Your employer will fill out a form verifying your employment status, salary, and if there are any planned changes to your employment status or raises scheduled.
And of course there is the most fun part, tax returns. Most lenders will ask for a year's tax returns, but it is not uncommon for them to ask for three. Have the full tax return available for each of the last three years.
When closing day arrives, you will need to have a cashier's check or certified check for the remaining down payment funds that are owed, as well as for whatever closing costs you are responsible for. Contact your lender a day or two before closing to make sure of the amount you need to bring in.
You will also need to bring a binder for homeowner's insurance and the paid receipt. Before proceeding with the closing, the loan officer will contact you to confirm that you have your binder for homeowners insurance and a paid receipt for the first year's premium. A binder is a document that proves that you have adequate homeowners insurance for the home you are purchasing. Your lender will not issue the mortgage loan without it, so this is a priority.
Once you are in closing, the closing officer will explain each of the closing documents before you sign them to make sure that they are properly understood. Understand that the signing of all documents may require a couple of hours, so don't be in a hurry.
After everything is signed, you may take possession of the home on the date specified in the agreement. If that happens to be the same day as your closing, then you will receive the keys to your new home at that point.
Yes, there is a lot that goes into the purchase of a home, and it needs to be done right the first time in order to avoid any complications late in the process, complications that may conceivably delay closing. But by taking the time now to go ahead and assemble what you need before jumping headfirst into the process, you will save yourself a lot of grief and frustration. Organization is half the solution when it comes to securing your new home loan.
