< Back to all branch locations
admin login JOIN USOUR TEAM PARTNER WITH US

Today’s low mortgage rates may cause many to start thinking about refinancing. To keep your loan moving through the potential application traffic, it might be wise to gather the following documentation now for less problems locating this information later. For your convenience, we’ve summarized some of the most requested documents you may need during the loan process.

LEARN MORE

Proof of Income

Your lender will want to know if you have enough income for your new monthly payments, plus any out-of-pocket closing costs. They can do this by understanding how much money you make. That’s why it’s important to make copies of recent pay stubs from your employer (usually 30 days of pay stubs), as well as up to two years of tax returns and tax forms such as your W-2s and/or 1099s from current and past employers.

Your Total Assets

You will need to document your assets, starting with your checking and savings accounts. This will help verify the source of your down payment and the value of your accounts. Along with those statements, you will also need to provide statement copies for stocks, bonds, mutual funds, CDs, retirement accounts and other real estate.

Your Monthly Debt

Among the debts you will need to document are your current mortgage, credit cards, student loans, home equity lines of credit, vehicle loans and more. This is important information for your lender to determine your debt-to-income ratio, which measures the percentage of your monthly debt payments to your monthly gross income. In other words, will you have enough income to meet your monthly financial obligations?

Credit Information

While you will not be asked to submit paper copies of your credit reports, your lender will need to perform a credit check with your permission. It may be in your best interest to request and review your credit reports in advance of the loan process, that way you have an opportunity to correct any errors and avoid any misunderstandings with your lender.

Home Appraisal

Your lender may also ask for a current appraisal of your home to help determine your loan-to-value ratio, an important calculation in comparing how much your house is worth versus how much you owe on your existing loan.

Other Possibilities

There’s always the possibility that your lender may request more (or less) documents that are unique to your situation. For instance, if you’ve been divorced, a divorce decree can indicate child support or alimony obligations. If you’re self-employed, your profit and loss statements for the current year can help establish proof of your income. And if you currently live in a condominium, your lender may want to see the Homeowners Association (HOA) fees you have paid.

You Have Document Copies in Hand … Now What?

If this all sounds too familiar, it’s because it probably is. Ultimately, you will be providing many of the same documents (just updated) as you did during your original home loan. But by preparing your documents early, you will take some of the stress out of refinancing. Once you’ve done that, it’s time to take the first step and contact a New American Funding representative who can help guide you on a path toward achieving your financial goals today.

GET STARTED

Feeds

Sluggish Loan Applications Show Weakness in New Home Sales

Posted To: MND NewsWire

While the Mortgage Bankers Association (MBA) is predicting newly constructed homes sold at a much higher rate in November than they did a year earlier, sales are expected to be down significantly from this past October. MBA's Builder Application Survey (BAS) data for November 2019 shows mortgage applications for new home purchases increased 27.1 percent compared to November 2018 but were down 17 percent from the prior month. This change does not include any adjustment for typical seasonal patterns. Based on the application data and information about market coverage and other data, the association estimates new single-family home sales were running at a seasonally adjusted annual rate of 688,000 units during the month. This estimate is a decrease of 13 percent from the October pace of 791,000...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBS Day Ahead: A New Way to Look at The Range

Posted To: MBS Commentary

Yesterday brought a nice little rally in response to a surprisingly rate-friendly press conference with Fed Chair Powell. The counterpoint to that conclusion is seen in the chart I posted in yesterday's recap. Specifically, bonds began the day rallying and were in the midst of a linear trend toward lower yields when Powell's press conference briefly took yields below that trend. They ultimately returned to the trend by the end of the day. My efforts to de-emphasize the significance of the Fed (and NFP before that) are not without a solid reason. Yes, these events can and will cause reactions on the day of their release--especially when they surprise markets. But unlike the average past example (especially before mid 2019), they haven't been up to the task of creating lasting momentum...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.