Preparation is key to anything, whether it’s a work meeting, an interview or your child’s first day of school; it always easier to see the big picture when everything is laid out in front of you. We encourage the same preparation when you begin your home buying process. It will also impress your mortgage consultant! Below, we answer your frequently asked questions regarding paperwork you may need to gather when getting approved for a loan:
Q: How do you decide what you need from me to process my loan?
A: The information you provide in the application on the Shea Mortgage website is verified on the automated underwriting system that we use. This system compares your financial situation with statistical data from millions of other homeowners to see where you fit in the spectrum. Depending on this comparison, the level of verification and paperwork needed is determined. In the Homebuyer Seminar: Getting Started Buying a Home video, our mortgage experts explains that many cases simply require a W-2, a pay stub and a bank statement to verify your assets and income.
Q: I am selling my current home to purchase this home. What type of documentation will be required?
A: A copy of the settlement or closing statement from your current home is required to verify that your current home mortgage has been paid in full and that you will have sufficient funds for the closing of your new home. Typically, the closings of both your current home and new home are scheduled on the same day, so bring the current home paperwork to your new mortgage closing.
Q: I have income from dividends and/or interest. What documents will I need to provide?
A: To verify the amount of your dividend and/or interest income, we require two years of personal tax returns so that an average of the amounts you receive can be calculated. Copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes are also required to verify your ownership of the assets that generate the income. Documentation from the dividends and/or interest for at least three years is considered for repayment.
Q: Do I have to provide information about my child support, alimony or separate maintenance income?
A: No documentation is required pertaining to child support, alimony or separate maintenance income.
For more information on our communities and mortgage team, please visit the Shea Homes website. For instant updates, facts, photos and videos, “Like” our Facebook page and follow us on Twitter, YouTube and Pinterest!