Applying for a Loan
Contents: Salaried Worker Self Employed Worker
It is highly recommended that you obtain a loan pre-approval before searching for a house. This will give you a very positive head start in that (1) you will know exactly what you can afford, and (2) you will save time when you do find the house you wish to purchase. Furthermore, it is a good negotiating tool with the seller because you are approved and "ready to buy". Interest rates and loan requirements vary from different loan sources and geographical areas. Check with you Loan Officer or whatever service you are getting your loan through on the latest interest rates for your area. A quick check can be obtained by clicking here. Return to the Willamette West Real Estate Library and click on the loan calculator to work out your monthly payment. There are a very large number of loan types available today. If you consult a mortgage broker you may find the best loan to fit your circumstances. For instance there are loans that require no documentation, low down payment loans, variable and fixed rate interest loans, etc. The type of loan that you can get approved for and your actual interest rate may vary depending upon your FICO or credit score. Your mortgage broker can tell you what this is. For regular documentation loans the following usually applies:
Salaried Worker Loan Requirements:
One or two years of W-2 Forms (photocopies) Most recent two consecutive paystubs or pay statements (photocopies) Most recent three months of statements (photocopies) for accounts such as: Savings Checking Money Market Mutual Fund Securities
Self Employed Worker Loan Requirements:
Last two years Federal Tax Returns with all schedules (photocopies) Year To Date Profit and Loss Statement Certificate or License Authorizing your occupation Most recent three months of statements (photocopies) for accounts such as: Savings Checking Money Market Mutual Fund Securities