Are you looking for a new home? Home ownership is an exciting road to travel but also one that is difficult to navigate. Filer Credit Union offers a competitive mortgage program for buyers of all walks of life, and the lenders here at Filer Credit Union are dedicated to providing you with the best service a borrower can get!
How to Prepare for the Mortgage Process
Want to be fully prepared to meet with a Filer Credit Union loan representative? Here’s a partial list of what you can gather in advance:
Two months of most current asset statements for all accounts, including blank pages
Two years of W2s
Two years of federal tax returns with all schedules
Recent pay stubs
Most recent statements for retirement accounts (IRA, 401(k), etc.)
Copy of driver’s license or other proof of identity
YTD profit and loss (P&L) statement for self-employed borrowers
Mortgage statement for all properties owned
Homeowner’s insurance and property taxes for all properties owned
It’s important to remember that the list of items requested by the lender will vary from person to person—and even transaction to transaction.
Your Filer Loan Advisor will give you a detailed list of items needed right from the start so you can get them gathered. And if you work with Filer Credit Union, you can even manage your to-do list and scan and securely send your documents right from your phone!
The Dos and Don’ts of the Mortgage Process
Do: Make a Savings Plan
Now is the time to focus on saving! You’ll need funds for:
• Earnest Money Deposit
• Down Payment
• Closing Costs
• As well as other initial home costs
Don’t: make late payments on your bills!
Do: Understand your Credit & Get Pre-Approved Early
It is a good idea to understand your overall credit picture when applying for a mortgage. Your credit understanding will help in the pre-approval process and make your mortgage experience a smoother process.
UNDERSTANDING YOUR CREDIT INCLUDES
• Opening new credit lines or Closing credit lines or Co-signing on loans
• Making major purchases on credit cards before or during the mortgage loan process
• Debts, Collections, Judgments, or other liabilities
• Identify how much house you can afford
• Set yourself up to make a stronger, more competitive offer
• Secure financing quickly and efficiently when time is of the essence
Don’t: Open or close credit lines without consulting a professional!
Do: Keep the Lines of Communication Open
Loan officers & associated professionals will contact you throughout the mortgage process
• Get your mortgage approved on time by being responsive and providing information or documents ASAP.
Don’t: Be slow to respond to your loan team!
Do: Maintain your Current Employment and Income
Applying for a mortgage is all about showing stability. The mortgage process will go smoother if you:
• Keep your job & income steady
• Avoid major changes like quitting, moving from hourly to salary, or changing to commission based pay
• Notify your loan officer if you amend your tax returns
Don’t: Quit or change jobs!
Do: Maintain a Paper Trail
Mortgage lenders are required to document where your funds come from. Keeping a paper trail is pivotal.
• Document money coming in and out
• Avoid making large deposits into your personal bank account that can’t be accounted for
• If you have funds such as mattress money that you plan to use towards your home they need to be reported in an account for a minimum of two months prior
• Keep personal & business funds in two different accounts if you are self-employed.
Don’t: Make large bank deposits (other than your paycheck)!