When Do I Apply For a Mortgage?

Step 8 - Apply for a MortgageOnce the buyer and seller accept the terms of the offer and sign the paperwork, you have an executed contract. Now it’s time to apply for a mortgage.

After the contract is signed, the clock starts ticking for everything documented in the contract, including mortgage application, inspections, and closing date.

Take a copy of the contract to your loan officer to officially submit the mortgage application. You will need to decide which mortgage to select prior to the application.

Here is a list of the 10 documents you may need to provide as you go through the mortgage application approval process:

  • Two years of tax returns (all pages).
  • Two years of W-2s.
  • If self-employed, two years of 1099s and a copy of your business license.
  • Last two months of bank statements (all accounts and all pages).
  • A signed and dated explanation of any bank account deposits over $1,000 other than normal pay.
  • Pay stubs from the past 30 days.
  • A copy of driver’s license or state identification.
  • The mortgage statement, insurance declaration page and the most recent tax statement for any other properties you own.
  • Divorce decree and separation agreement (if applicable
  • A copy of your earnest money check and purchase contract.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

At Arthur State Bank, our mortgage loan officers are available to guide you every step of the way with mortgage information personalized for your situation.

These are the seventh and eight steps in the First Time Home Buyer’s Road Map

  • Step 7: Sign a Contract
  • Step 8: Apply for a Mortgage

Be sure to review the entire road map.

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