Items Needed for a Mortgage Application
You can use this handy checklist as you gather the documents for your mortagage application. Remember, credit is subject to approval by your lender.
____ Address for two full years
If Self Employed:
____ Two Years of 1040 Tax Returns
____ Most recent Bank/Asset Statements
____ Most recent two months asset statements, for example - checking account,
____ If applicant is selling a home, copy of the purchase agreement
How Are Mortgage Rates Derived?
The rate for a fixed rate mortgage is set for a loan term. This is usually 15 or 30 years. Movement in a fixed-rate mortgage rates are normally based on the rise and fall of the 10 or 30 year Treasury Note yield.
To understand mortgage rates, it is important to understand the source of the money. Some funds loaned to consumers for mortgages originate from deposit accounts held in banks. Today, mortgages are increasingly funded based on sales of mortgage-backed securities. (MBS) The MBS is a financial market product that combines groups of mortgages held by a bank or other lenders. This package is sold to investors. In some cases the mortgage rates offered to lenders are based on what the financial markets are willing to pay for the securities. As prices for Mortgage Backed Securities increase, mortgage rates can decrease.
Mortgages can vary on a local level. What looks too good to be true is often exactly that- too good to be true. Smart lenders want consumers to be able to meet their loan payments and succeed in home ownership. When shopping for homes for sale in Rochester MN, it is wise to shop locally for mortgage lenders. Wells Fargo Home Mortgage is just one of several Southeastern Minnesota mortgage lenders that can assist with the pre-approval process. Once an offer is presented, negotiated and accepted, consumers should realize that mortgage rates are dynamic. There will be an opportunity to lock in the rate. This is important if rates are on the rise.
It is important for consumers to take a realistic look at their credit and financial situation, and to connect with a reputable lender. When comparing the financial benefits of one lender verses another, home buyers should take into consideration that the particular lender's history of providing good service when processing a loan, as well as the company's overall reputation. David Birka, Rochester MN Realtor is part of the consumer's team of professional advisors to help make a realistic assessment about what they can afford.
David Birka • Coldwell Banker AYS • 2510 Superior Drive NW • Rochester, MN 55901 • 507-250-1000 • firstname.lastname@example.org • site map
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