Finding the Best Mortgage Lender

Meeting With the Mortgage Lender

A North Carolina mortgage process is pretty much the same process as all other states. You start by submitting an application with a mortgage lender (mortgage broker, mortgage company - they have many names). That process usually begins with the first meeting with the bank or other home mortgage company. For this meeting, you will need to bring information which outlines both your income and your long term debts. These days, bad credit is not as big an issue as it was in years past. Many mortgage companies have special programs for home buyers with bad credit.

You may prefer to meet with the lender before you start looking for your new house (or if you are wanting a home equity loan on your existing home). This will help you determine in advance how much you can afford per month and the amount of loan for which you qualify. This is called pre-qualification and it saves time and effort by making certain you're looking for real estate in the price range you can afford.

Completing the Loan Application

First, the lender will give you the application, called the 1003 Mortgage Application, and you will need to gather the following items to complete this:

1. A purchase contract for the property you are interested in (if you have one).
2. The numbers of all of your bank accounts and the address of your bank's local branch. along with
3. Your checking account statements from the previous 2 or 3 months (plus your savings account statements if you have a savings account).
4. Your tax returns for the previous 2 years, recent pay stubs, your W2 withholding forms or other proof of your current employment and income verification.
5. Your credit card bills for the past few months or canceled rent or utility checks. These will show your payment history and the amount of revolving debt you have.
6. Any information on other debt you have for which you get a monthly bill (car, student, furniture loans or store credit cards.
7. If you are self-employed, bring your company's current balance sheets and recent tax returns.
8. If you are receiving money from a relative or support organization to help pay for the property, make sure that you get a "gift letter". This letter will explain that the money you are receiving is a gift and is not going to have to be repaid.

Qualifying for the New Home Loan

Having these items on hand when you visit the mortgage lender will make the application process go much faster and smoother. Additionally, when you submit this application, you will also have to pay the application fee and the fee for the appraisal. At the conclusion of this meeting with the lender, you will have a good idea of the amount of and type of loan for which you qualify. Also, the mortgage lender should then give you a good faith estimate of the amount of the closing costs. After you submit the completed mortgage application, with all of the supporting documentation, you should be notified within a matter days whether or not you qualify.

Don't Slow Down the Home Loan Process

After you complete the application, the lender will verify the information submitted. Your employment, bank balances and other information will all be verified, so make sure it is accurate. Also, respond quickly if the lender requests additional information. Make sure to give them a phone number where you can be reached. After the pre-qualification process is completed, you can start looking for that new home! We also offer some tips on selecting a good real estate agent, if you are planning on using one to help you in your search. Plus, we offer mortgage calculators to give you a sneak peek at how much your projected monthly payment will be. Additionally, try to determine if the real estate you are interested in is located in a flood zone. The lender will want to know that.