From start to finish, mortgages at Community Choice are fast, easy and UNcomplicated. Here are a few ways you can get ahead of the curve when you’re preparing to apply for a loan.
Income & Employment
Money makes the world go ’round, and it’s a major factor in being approved for a mortgage. You’ll need to provide your last two paystubs along with your W2s and federal tax returns for the last two years. If you’re self-employed, there are additional requirements.
Pro-tip: If you receive bonuses or commissions, or have recently changed roles, give us a call at (515) 334-8100 to set up time to talk through the specific documents we’ll need.
It’s also important to note that, if you’re serious about getting a home, now is not the time to make a career change. Changing employers, roles or even methods of compensation can negatively impact your ability to purchase your dream home.
Ideally, when looking to purchase, you’ll have at least two years with your current employer under your belt.
Deposits & Assets
Maybe you’ve got a lucrative lemonade stand side hustle. Maybe your granny’s a regular scratch-off winner who splits her cash prizes with you. We might want to know a little more about these UNexpected cash flows.
Any notable cash deposits you make could come into question during the application process. It’s good to be prepared to explain the who, what, when, where and why of these deposits… and we’re not opposed to a free lemonade, either.
Finally, it’s important to combine the funds you’ll need to close into a single account at least two months before your application.
Liquidation
If you’re thinking about…
- Selling your stocks, bonds and/or investments
- Borrowing against a retirement account
…do it soon!
Cashing out now may cost you a few dollars in additional gains, but you’ll be protected against losses during a critical time which is UNdoubtedly priceless.
Current Housing
This can go a few different ways…
- If you own and are selling, you’ll need a copy of your Closing Disclosure.
- If you own and are not selling, you’ll need to either qualify for both homes or meet the requirements for renting your current home.
- If you are renting, you’ll need 12 months of cancelled checks or written verification from your management company.
- If you live rent-free with family or friends, we may ask for a letter stating this.
Credit
Protecting your credit score is especially crucial when you’re getting ready to buy a home.
Avoid new credit or inquiries that can lower your score and increase your rate. If you co-signed a loan or are being reimbursed for a loan that’s in your name, you will need at least six months of checks to exclude it from your credit report.
Don’t forget to review your credit report for errors, that way you can get those corrected ASAP. Get into the habit of monitoring your credit report because your creditworthiness is directly tied to the rates you’ll qualify for.
Reach out to us at (515) 334-8100 with any questions.
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.