Prior to making an offer to purchase a property listed for sale, your agent will assist you in submitting a Loan Application with multiple lenders.
As part of a loan application process, the lender requests documents they need to analyze your creditworthiness, including;
- w-2s or other tax documents, such as (Schedule C) for the self-employed;
- recent tax returns;
- recent bank statements; and
- recent paystubs to support your employment and income in formation.
After the seller accepts your offer, the mortgage lender or broker requests additional information from others to process your application, including:
- an appraisal report to establish the value of the property which will be security for the mortgage;
- verification of deposit;
- verification of income; and
- a credit report
For your best interest, always submit applications to at least two lenders. Shopping for a mortgage allows you to compare the interest rate and lender fees each lender offers. This yields the lender with the best terms available in the market.