Applying for a mortgage isn’t an easy process. You’ll have to provide the mortgage lenders with various documents in order to be approved for a mortgage loan and for them to ensure that you will be able to pay all your monthly payments.
Thus, having all your documents ready beforehand is always a good idea to prevent any delays that might cause a hurdle in receiving a mortgage loan.
But what exactly do you have to submit to a lending company to get your process initiated in no time. Here we have created a list of all the documents you will have to provide to a Mortgage lending company in Dallas, Texas.
Government-issued ID
You must provide your mortgage lender with a copy of your driver’s license or passport.
Social Security card
A social security card is also necessary to provide to your mortgage lender. You might also be asked to provide your birth certificate instead of a social security card.
Bank statements
You will be required to provide the mortgage lender with the bank statements of all your current accounts. This includes all of your checking, savings, and investment accounts.
Credit report
Your mortgage lender will be analyzing your credit report thoroughly. This is why it would be a great idea to review all of it in advance and resolve any issues if you find any. Your credit report is also a great indicator of how much loan you can actually borrow.
Employment income
You need to show the mortgage lender that you are currently employed and that you have a passive income coming in so that you can easily pay off your monthly payments.
Your pay stub must include your employer’s name and other contact information, too. As well as W-2 forms and an explanation of employment gaps, if any.
In case you are self-employed, you will need to prove to the mortgage lender that you still have stable income coming in. In this case, you will be asked to provide them with two years of personal tax returns. Business tax returns, profit and loss statements, and the balance sheet of your business.
Income tax returns
You will be required to provide tax returns from at least the last two to three years. This will show the lender your income for the past several years. Along with this, you will also have to provide them with IRS Form 4506-C so that your lender can access your tax transcript.
Assets and debts
The mortgage lender will look at your credit report to determine your ability to repay the loan. They will look at any outstanding debt, account statements or other proof of payments you might have.
Rent Payments
If you live in a rented space, you must provide the lender with at least 6 months’ proof of rent payments to your landlord. This may include a bank statement, a copy of a lease agreement, at least two months of canceled checks, and even the contact information of your landlord.
Preparation Of Completion Of Contract
Once contracts have been exchanged, both parties can continue with their preparations for completion. The buyer will need to arrange insurance and prepare any mortgage paperwork required, while the seller will need to start packing up their belongings ready for the move.
Completion usually takes place around two weeks after contracts have been exchanged, although this can be longer or shorter depending on the arrangements that have been made. On completion day, the purchase price balance will be transferred from the buyer to the seller, and keys will be handed over.
Once completion has taken place, the home officially belongs to the new owner, and they can start enjoying their new property!
Step By Step Process Of Exchange Of Contact:
The first step is finding a property you wish to purchase and making an offer to the seller.
- If your offer is accepted, your solicitor will then be instructed to carry out all necessary checks on the property
- Once your solicitor has given you the green light, contracts can be drawn up, and both parties will sign them
- At this point, a deposit will also be paid
- Once both parties have signed and exchanged contracts, they are legally binding
- Completion will take place usually after two weeks
- Once completion has taken place, you can finally start moving in
How To Exchange Contacts?
The process of exchanging contracts is quite simple. Once both the buyer and seller have agreed on a price and the terms of the sale, their solicitors will draw up a contract of sale. This document will outline all of the relevant details of the sale, including the price, any particular conditions agreed upon, and when completion is expected to occur.
Once both parties are happy with the contract, they will sign it, and each party will keep one copy. The buyer’s solicitor will then send the signed contract to the seller’s solicitor, along with what is known as an ‘exchange deposit’. This deposit is usually around 0.25% of the purchase price and confirms that both parties are serious about going ahead with the sale.
The buyer is legally committed to buying the property, and the seller is legally committed to selling it. If either party decides to back out of the sale after this point, they will forfeit their deposit.
Preparation Of Completion Of Contract
Once contracts have been exchanged, both parties can continue with their preparations for completion. The buyer will need to arrange insurance and prepare any mortgage paperwork required, while the seller will need to start packing up their belongings ready for the move.
Completion usually takes place around two weeks after contracts have been exchanged, although this can be longer or shorter depending on the arrangements that have been made. On completion day, the purchase price balance will be transferred from the buyer to the seller, and keys will be handed over.
Once completion has taken place, the home officially belongs to the new owner. And they can start enjoying their new property!
What Can Be Classified As An Unusual Property?
There is no definitive answer to this question. Anything outside the traditional definition of a “property” could be considered unusual. For example, properties not permanently affixed to the land (such as mobile homes) can be difficult to finance with a traditional mortgage loan.
Other examples of unusual properties include:
- Non-traditional construction materials (e.g., shipping containers, straw bales)
- Unconventional dwelling types (e.g., yurts, Earthships)
- Properties located in remote or hard-to-reach areas
• Historic properties or landmarks
If you’re having trouble finding a traditional mortgage lender willing to work with you. Consider looking into private lenders or hard money loans. These loans are typically more expensive. But they may be your best option if you’re having trouble securing financing from a more traditional source.
Do some research and talk to a few different lenders before making any decisions. Compare interest rates, fees, and terms before choosing the right loan. And remember, even if it takes some extra work to finance an unusual property. It will be worth it when you can call your new home yours.
Conclusion
Buying a house is a huge milestone in life. It’s essential to be as prepared as possible before taking the plunge. The process of exchanging contracts is one of the most critical steps in buying a home. So make sure you understand everything involved before proceeding.
