Whether you’re buying your first home or refinancing your second, it’s essential to know what you need to secure a mortgage. Lee’s Summit boasts many fantastic neighborhoods, so it’s no wonder why many people choose to settle down in this area. Although you may have found the community you want to live in, there are a few things you should consider before starting the process. The following key items are necessary to obtain a home loan.
You will need to determine how your new mortgage will fit into your current budget and to some extent, your future obligations 15 to 30 years down the road. Create a budget to help you decide how much you can feasibly spend every month on your loan payment. Remember to factor in other costs such as insurance, taxes, and homeowners association fees into the total amount you will be paying each month.
Although you may have an idea of what the loan payment should be and what you can afford, your lender might see things differently. Borrowers should get pre-approved for a home loan before they look at any properties. A pre-approval letter can give borrowers a competitive advantage over other prospective homebuyers. Additionally, it provides negotiation power when dealing with sellers.
In the pre-approval process, you will find out:
- Exactly how much home or land you can reasonably afford.
- The amount of cash you will need for a down payment.
- The advantages of having a larger down payment.
- What the lender thinks you can afford, based on your personal information.
Securing a home loan involves a lot of paperwork. It will provide a detailed look into your employment record, credit history, and financial assets and liabilities. Gathering these records can be easy and manageable, if you know what your lender expects of you. Below is a list of the documents which you must have to be approved for a mortgage in Lee’s Summit.
- Valid driver’s license.
- Secondary identification, such as a passport or social security card.
- Most recent paystubs for the past two months.
- W-2 forms from your employer for the last two years to verify employment and earnings history.
- Signed federal tax returns for the past two years.
- Most recent bank and asset statements for two months.
- Divorce decree, if applicable.
- Name and phone number of your landlord, if you are currently renting a home.
- Credit report.
A trustworthy team
One of the smartest things a homebuyer can do is to seek professional guidance from a realtor and an experienced lender to help them with their mortgage. Lee’s Summit has many lending companies, so it’s important to do your research. It’s crucial to have someone who is willing to work with your unique situation and guide you through any obstacles. A good lender can save you time and money by simplifying and clearly explaining the loan process.
Need more information on how to secure a home mortgage in Lee’s Summit? Contact Cornerstone Mortgage, Inc. today at: 816-525-9910 to learn more. Their loan officers are available to answer any home financing questions you may have.