12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!Read More »
Can I Get a Mortgage?
By Kelly WingardNFNS Columnist
Is wondering whether
you can get a mortgage stopping you from applying for a new home loan? Fear
not. Mortgage companies want you -- make that <i>need</i> you -- because without mortgage applicants they
would be out of business. So don't let your fears interfere with your dream of homeownership.
Gather your courage by repeating this mantra: A mortgage company is a friendly
place, where I can get help to buy my own space.
What Will Mortgage
Companies Ask?
Okay. So you've researched mortgage companies, selected one, and made an appointment. Now comes the hard part: Gathering the information you need to be approved for a new home loan. In order to determine how much mortgage you can afford -- and assess your credit risk -- mortgage companies need the following information:
Income records for the previous two years, including tax returns and other documents showing proof of:
- W-2 wages or self-employment income
- Dividend and interest income; and
- Any other regular source of income you receive (alimony, child support, etc.)
Records substantiating personal assets, including:
- Bank statements with current checking and/or savings balances;
- Current market values for any investments, such as stocks, bonds, or certificates of deposit;
- Retirement fund balances
- Life insurance policies (face amount and cash value).
Records substantiating liabilities, including:
- Balances and account numbers from current credit cards and loans. Most if not all of these should show up on your credit report, but be prepared to document them.
Granted, digging through your financial records will take time, but just think how great it will be when your new home loan is approved. You can buy a place with space for a file cabinet!
About the Author
Kelly Wingard is a
freelance writer and a 25-year veteran tax preparer. She is a regular
contributor to the University of Illinois Tax School training manual for tax
professionals.
About the Author
Kelly Wingard is a freelance writer and a 25-year veteran tax preparer. She contributes regularly to the University of Illinois Tax School training manual for tax professionals.