Applying For A Home Loan - What Do You Need

The Basic Needs When Applying For A Home Loan
Congratulations! Now that you have found the perfect home, all that's left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.
Property Description
When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a deposit.
Your Personal Information
All persons named on a home loan must be able to provide requested personal information including but not limited to names, dates of birth, current address, former address (typically if within the last two years), marital status, current and former employment information, telephone numbers and any dependants you may be responsible for.
Most lenders require tax returns for at least the two years preceding the loan application, along with current payslips or, if self-employed, a year-to-date profit/loss statement. This may be required for more than the previous years income.
Current Mortgage Expenses
An important part of every home loan application is affordability. Your lender will need to know the percentage of your income that will be available to pay for a new home. If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property. This includes a mortgage payment, body corporate fees, local government taxes (rates), mortgage insurance, homeowner's association fees, utilities, etc. If you plan to sell the home, advise your lender know so that they are aware you are simply replacing one debt with another.
Legal Yes Or No's
Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application. Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.
Statement Of Assets & Liabilities
When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities. An asset is property, either real or personal, that is owned and is of value. A liability, on the other hand, is a financial obligation for which one is liable. A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc. If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine