Once you decide to apply for a bay area mortgage, you’ll need to start gathering your financial documentation. It’s likely that your lender will offer a preapproval based on your credit score and the information you provided in your application, but before you close on the actual loan, you’ll need to take a few extra steps.
Proof of income and the value of other assets will be important. You may be required to provide pay stubs or employment contracts or tax filing forms. If you’re self employed, be prepared to share 1099s and bank statements that show consistent deposits.
Most lenders will also require proof of your down payment as well as closing funds. It’s not going to be enough to say that you want to put $20,000 down; you’ll need to show where that money is coming from. You’re also going to have to demonstrate that you have the cash available to cover closing costs.
It’s a great time to get a mortgage. Rates are still at extremely low rates and there are a number of products available. It helps to be prepared before you apply.
Leave a Reply