Meeting a mortgage specialist

lam2014

Hey Ladies,

My boyfriend and I are very eager to live together but realize it's not going to happen any less than a year from now. That doesn't stop me from wanting to plan things out and be prepared for when the day comes that we are able to apply for a mortgage. We are meeting with a mortgage specialist next week and I was hoping that you ladies could help me come up with some important questions to ask as we are both very new at this and would like to be better informed of our options and goals that should be reached before applying. I know some of you are in the process of buying a home, have bought their home or perhaps are in the same boat as me. Either way any advice/suggestions would be greatly appreciated.

Thanks  

JBC123

I am a mortgage underwriter and I can offer you the following suggestions off the top of my head:

Make sure you are going to get a fixed rate mortgage. 

Know the difference between an FHA, VA and Conventional mortgage.

Know how much you can afford to put down and remember that you will need sufficient funds to close (and then some)

Do not buy more house than you can afford.  Do not take an adjustable rate mortgage in order to get a lower payment thinking you can refinance it when it adjusts.  Get a fixed rate mortgage.

Make sure you have monies for reserves (usually need to have two month's mortgage payments left in the bank after all is said and done).

Make sure you have some money left over for moving expenses and repairs.

Make sure to have your taxes and insurance payments escrowed (included in your mortgage payment)

If the mortgage specialist says something you do not understand, make sure they explain it to you in plain, simple English.  Do not sign anything you do not understand.  Do not rush either.

When it comes to the documentation you give to the mortgage specialist:

Make sure you know exactly what is in your credit report(s)
Make sure your bank accounts do not have any large, unexplanable deposits and make sure you present all pages of the statement, even if they're blank.
Make sure your pay documents are clear and do not have any parts cut off
Make sure you have copies of your W2s available

Do not offer anything to the mortgage company that they are not asking for (i.e., don't give full tax returns when they're only asking for one paystub)  If they submit something to an underwriter that inadvertently raises a red flag, you cannot un-ring that bell - the underwriter will have to investigate further.  

If you are self-employed, make sure you have a two-year history of employment and make sure your taxes show positive income.   Make sure you submit ALL of the pages of your tax returns - personal, business and all the necessary schedules.

Hope this helps