Whenever you are given an application at the bank or credit union, request to bring it home and undertake to fill up the application when are you are in the comfort of your home where all your pertinent documents are handy and you are not undergoing pressure. If you are doing it online, use extra caution, watching out for mistypes and misspelling words and make sure that you write the correct info under correct fields of the application forms
One way to go through the mortgage application process without a hitch , is to create your own application package approximately one year and no later than six months prior to applying for a home loan. Gather all of your information, check your credit report that way you can be prepared for any surprises before youtalk to a lender. Here are some of the things you should prepare during this period:
List of debts
Make sure you know exactly how much you owe and to whom the money is owed. If you are married or you are buying your home with a partner, you should be aware of the totalamount of all individual and joint debts.
Gather your documents for auto loans, school loans, personal loans, other mortgage payments, alimony payments, child support payments, credit cards and any other type outstanding debt. Create a master list with all of the items, account numbers, addresses, amounts owned, interest rates and monthly payments.
If you can pay off a significant portion of any one medium to large debt perhaps you should consider waiting for an additional year before applying for the loan.
If you have transferred residence recently or have been constantly mobile for a while, it can be difficult to remember all the addresses, apartment numbers and cities where you lived. Your address history should also be on your credit report, but you need something else such as old statements or information from your address book to make sure that your credit report is accurate.
Get a copy of your credit report from all three credit bureaus. Check the information from each report against your records and also against each other. Sometimes when an outstanding debt has been paid or settled, the information might be sent to only one bureau or not at all. Call your lender and ask if and when the essential information will be provided to the credit bureau.
Then, follow it up with the credit bureaus to make sure the information has been added to your file. What type of information are you looking for: social security numbers, addresses, dates on accounts, opened accounts, closed accounts, outstanding debts, negative information that is incomplete or inaccurate.
List of assets
Frankly, how much are you worth? Do you have any stocks, bonds, savings accounts, retirement plans or own another Singapore property home? Again, create a master list with the items, account numbers, worth or potential worth if liquidated and addresses or contact details. .
If you arecontemplating to sell one of your asset to use as down payment, complete the sale transaction at least six months prior to filing out your mortgage application. Mortgage lenders want to see that you have the ready money to cover all the costs in connection with getting a mortgage. They are particularly interested on how you come up with your cash. They want to know of your current financial situation for the past six months.
If you have alimony or child support obligations and want this to be included in the calculations prepare all documents to show the amount of money you are receiving and how much you will receive in the future.
Bankruptcies and foreclosures
Be honest. Do not try to hide foreclosures and bankruptcies issues against you. Sooner or later, lenders will know everything of your financial history. So there is no use hiding it from them. Just make sure the information is accurate. Gather all of your paperwork including dates, settlements or outstanding balances at the time the debt was discharged and keep it handy.
gather W-2 forms for the last 2 to 3 years that reveal your employment history and income. As with your habit in paying your debts, it is suggested not to have sudden change of job within 6 months to 1 year period prior to applying for the loan. The sudden change of income looks doubtfu. However, if there is a sudden increase or decrease in income, be prepared to provide a full verbal or written explanation along with the rest of paperwork.
Remember that the purpose of all this data collection is to make sure that you have the most accurate and update picture of your financial history to make the mortgage application process smooth and easy.