My New Blog

When getting a mortgage you want to make sure your Loan Officer(Mortgage Banker or Broker) knows as much information as possible.  The more information, the better.  And unfortunately, if you do not tell them they won’t know.  And not knowing can cause your loan to be denied.  Here are 7 major things you MUST tell your loan officer when applying for your Mortgage:

1.     I am Paid Commission-   If you are paid commission you have to tell your loan officer.  This is, because commission income is treated differently than someone who is paid a salary.  If you are paid commission you need a track record of getting paid commission for usually 24 months.  And your commission income is divided over your time working.  So needless today, you will want your Mortgage Professional to calculate your income vs telling them the wrong income amount.  You will also want to tell them about overtime, bonus and any other type of income. 

2.     I am Married- Trust me, I know this seems obvious but I have had clients tell me they are not married.  Sometimes it is because they are separated from their partner or were married in another country.  But, trust the truth will come up during the mortgage process.  So make sure to be up front with your mortgage person so they can come up with the best solution for you. 

3.     I am Self Employed- If you are self employed(or paid a 1099) your income will be calculated based on your income after your write offs on your tax returns.  And most situations will be calculated over a 2yr period.  So even thou  you deposit “ $20k” a month in your bank account does not mean that this is your income.    And in this situation make sure you fax your last 2 years tax returns to your Loan Officer.  And let them calculate your exact income.

4.     I deposit random amounts into my Bank Account- For every mortgage, you are required to submit the last 2 months bank statements.  So any large deposit in the last 60 days has to be verified.  So if you have sold a car, motorcycle, baseball cards, etc recently make sure you have proof. 

5.     I am here on a Visa- If you are here in the United States on an Immigration Visa, make sure your Loan Officer knows.  And make sure you know which Immigration Visa’s you can have to get a mortgage. 

6.     I get/pay child support- If you get paid child support make sure you tell your Loan Officer.  And if you pay child support make sure they also know this.  As both examples can increase or decrease your income.

7.     I owe Back Taxes- If you are owe back income taxes, tell your Loan Officer.  If you owe back taxes and/or making payments on them, this could affect your loan approval.  And your Loan Officer will find out about the back taxes when they order your income records from the IRS.

Don’t leave it up to your Mortgage Professional to assume anything, tell them up front.  This will make your loan go smoother and cause you less stress.  This list makes up the Top 7 things you MUST tell your Loan Officer when applying for a Mortgage.