Detroit Real Estate

Metro Detroit mortgage application checklist

You signed the purchase agreement for your new home and you usually only have 5 days to apply for your mortgage.  Here is a quick checklist of what to bring when you meet with the Michigan mortgage loan officer.

• Copy of Driver's licenses for all borrowers
• 30 days of your most recent consecutive pay stubs ( if paid bi-weekly you need two) (if paid weekly you need 4 pay stubs)
• Last 2 years w-2's for all jobs you have held in the last two years
• written explanation if you have been off for an extended period of time for layoffs, family leave, or maternity leave
• Last 2 years of tax returns, and 1099's ( all schedules, all pages) if you are self employed or if you earn commissions or bonus
• Bank account statements for all accounts (all pages front and back even if it looks like it is nothing)  Lenders are sticklers about having all pages
• Gift letter ( if you are being given money for a down payment) The bank will want to track this money.  So get the gift money deposited into your account.  Don't spend any of it.  The bank will want a copy of the check, a copy of the cancelled check once it is deposited, and a bank statement from your account once it has shown up in your account)
• clear, legible, and fully signed Purchase agreement with all addendum's
• Copy of earnest money deposit ( you will have to go to your bank and get a copy of the cancelled check after it clears or a bank statement showing check has been cashed. 
• Asset statements.  If you have mutual funds, 401 K, IRAS, retirement accounts, stocks, or cds.  Copies of the accounts all pages front and back 
• Last 2 years employer information ( name, address, phone, length of time you have worked there)  Phone number to HR also
• Last 2 years housing information (addresses of where you lived) if you live in an apartment complex bring phone number
• Divorce decree to show split of marital assets and child support payments
• If you receive child support or social security we will need award letters, divorce decree, friend of the court documents, and bank statements showing deposits of the money
• Written explantion of any derogatory credit issues

The key here is to bring everything you can and let the mortgage loan officer to sort it out.  It is very important that you gather all of these documents.  Banks and lenders are anal.  They want to see everything.  The better and the more complete your documentation you have for your mortgage the smoother it will go.  Too many times Metro Detroit home buyerswon't bring all the documents because they don't realize that the documents we are asking for are important.  Many banks won't start a loan until they have a purchase agreement.  The bank won't close the loan without your w-2's or your pay stubs.

Be honest and don't commit loan fraud.  Tell your loan officer if you have had a change in your job status, marital status, or been off your job for an period of time over a month in the last 2 years.  Surprises are not good for your loan officer.  The bank usually finds out and then requires a lot more loan documentation.  They think you are trying to pull a fast one.  It is easier for us to address the issue up front and have the paperwork to back it up instead of running around for more information the week before closing.

Making your Metro Detroit home purchase go smoother is my job.  Getting every bit of the needed mortgage documentation will make you breathe easier about closing on your mortgage loan.

If you are just thinking of buying a home, or just shopping Metro Detroit real estate now is a great time to start gathering all your loan documents early.  You would be surprised at how many times you have to order a W-2 or call your stock broker for the latest asset statement.

                       My organization quote of the day:

First comes thought, then organization of that thought, into ideas and plans: then transformation of those plans into reality.  The beginning, as you will observe, is in your imagination.

                Napoleon Hill

So start thinking about owning your home, and start planning today.

  Russ Ravary your metro Detroit mortgage and real estate specialist