This is What You Need to Prepare for a Mortgage Application

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Tags: First Time Home Buying, Mastering Mortgages

When it comes to the mortgage application process, you can never be too prepared. This is what you need to prepare for a mortgage application.  

To apply for a mortgage, you will first need to consider lenders. At Wyndham Capital, we are not only a fast and easy mortgage company, but there are no hidden fees. Once contacting a lender you will begin the pre-qualifying process. This is the first step in the loan process. Here are some things you will need to prepare.

 

Employment Verification

Lenders want to ensure that you will be able to pay them back and the easiest way to do that is through employment verification and proof of income. To show this, prepare previous pay stubs, W-2s and other forms of income. These days there are more self-employed people, freelancers and independent contractors. If that’s you, include two to three years of both personal and business tax returns, proof of business debts and any past 1099 forms you have. 

 

Tax Returns

Collecting previous years’ tax returns will also be required. It will make the mortgage application process easier when you have them in hand and ready to share. As yet another way to verify your income, most lenders will request at least two years of tax returns regardless of your employment type. 

 

Statements and Assets

Lenders will want to look at your bank statements along with any other assets you may have. Lenders do this to make sure you are prepared for your new monthly payment. 

 

Identification

Having two forms of ID will help speed up the mortgage application process. Two common forms of ID that are required are your Driver’s License or photo ID, as well as your Social Security card. 

 

Renting History

Oftentimes many lenders will want proof that you can pay your mortgage on time. A great way for them to see that is to request proof of rent payment. It may take a little work to get this documentation together, so having it prepared before you fill out a mortgage application will be helpful.

 

Credit Report

Credit is a big part of the mortgage application. It also will be a determining factor when locking in a mortgage rate. Oftentimes paying down some debt before completing a mortgage application will improve your score and help you get a better rate. While a lender may pull your credit report on their own, you can always include a copy in your application as well. 

 

Financing

Deciding how you will finance your home is a big decision and should be considered thoroughly for a mortgage application. Whether you are going the traditional route with a fixed-rate mortgage or have decided to take advantage of an adjustable-rate mortgage, Wyndham Capital has many home loan financing options available depending on your needs.

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Monthly Payment

It is wise to have a general idea of what your monthly mortgage will be while preparing for your mortgage application. An easy way to determine this amount is by using a mortgage calculator with taxes. This calculator will include your payment amount, as well as any and all taxes associated with homeownership. 

Mortgage Calculator Tool
 

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Purchase Price

With your income in mind, you can determine what an ideal purchase price for a home is for you. Knowing this information will give you an idea of the amount you will qualify for when you go to apply for a mortgage. 

 

Unless you are a real estate and mortgage professional, preparing to purchase a home can feel very overwhelming. There are a variety of forms to fill out and requirements that must be met. At Wyndham Capital, we understand and have compiled a list of frequently asked mortgage questions. We are here for you! 

Maggie Solomon
By: Maggie Solomon


Written by Wyndham Capital Mortgage professional content writers — Content reviewed by WCM's Content Strategist, Maggie Solomon.

Maggie joined the Wyndham Capital Mortgage team in November 2020 as a Content Strategist. She has more than five years of content creation experience, which includes launching WBTV’s digital brand Queen City Weekend (now QC Life) and garnering more than 1.1 million page views across her articles. With a love of storytelling, she hopes to bring that passion to WCM and the many families it serves. She resides in Charlotte, North Carolina, and can often be found at a coffee shop, latte in hand.