When you are buying that dream house, you may be dreading having to apply for a new home mortgage if you have no idea about what to expect or what information that you need to provide your lender with so that they can easily make the determination whether they will Approve or Deny your application. Continue reading on to find out more about this. The 4 necessary pieces of information that you need to provide any lender are: Contract of Sale, Your Personal Information, Your Employment Information and All Financial Information.
Contract of Sale
Whenever you are buying a residential property that you will need to get a new home mortgage to be able to purchase, the Contract of Sale (or Sales Agreement) is one of the first documents that the lender will ask you for. This tells the lender what you will need to borrow along with you down payment information and the total Selling Price of the property. This also provides the lender with the information that they need about the property itself which is also used to determine eligibility.
Your Personal Information
You will also need to give the lender as much personal information as they are asking you for when applying for your new home mortgage. This information includes your names, current address, marital status, family size, where you currently live and a little bit of your personal legal history (as far as criminal matters are concerned). You may not understand why all of this information is being requested, but you need to provide as much of it as you possibly can to your lender. This is part of the information used to determine whether or not you are a good credit risk.
Your Employment Information
When you apply for a new home mortgage and are buying a new home, the lender will also ask you for all of your employment information. You will need to provide them with your employer’s name, address and telephone number as well as a certain number of recent pay stubs. This is to verify that you are gainfully employed and are making enough money to be able to meet your mortgage payments on time. The last thing that any lender needs is to have to foreclose on and sell a property themselves because the buyer could not afford the payments. They try to avoid this as much as they possibly can be being very strict as far as what they will approve in the way of new loans.
All Other Financial Information
You will need to tell the lender a few other pieces of you personal financial information when you apply for that new home mortgage as well. You will be asked about your current debts: current rent or mortgage payments, what you pay for your utilities monthly, are there any car loans payments as well as how much per month and how many are left, are you paying or receiving child support and all other relevant monthly expenses paid.
