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Types of Mortgages

Understanding the Loan Process to Finance Your Home

Applying for a mortgage can be quite intimidating - especially for a first time home buyer. With a bit of preparation, you can arrive at your lenders office with all required documentation and be well organized and ready to be evaluated to secure the financing for your home. A MABA buyer agent will assist home buyers in home financing options and facilitate how to finance a home by working with proven, professional lenders to improve the overall process for you, the home buyer. Not all lenders are the same, so leverage the experience of your MABA buyer broker to secure a solid lender.

To increase your chances for a successful mortgage approval, first evaluate your credit standing. If your credit report contains problems or errors, resolve them before applying for a mortgage. You can get one free credit report a year; do it before you apply for your loan to check for errors.

Gather the Information Needed

To finance a home requires a significant amount of information and documentation. It is recommended that you organize the information below in advance so you are prepared to apply for a home mortgage.

  • Mortgage Application: This form requires detailed information about you: your employment record, the home you want to purchase, your personal finances, etc., for each person who will be listed as a borrower.
  • Verification of Income: You will be required to provide earning statements such as W-2 forms, recent pay stubs, and tax returns for the past 2 years. If you are self-employed you will be required to provide profit and loss statements and tax returns for the current year plus the past 2 years. You will also be required to provide documentation for any additional income such as social security, child support, bonus, commissions, interest income, veteran’s benefits, etc.
  • Verification of Assets: The lender will require all bank account numbers, the address of your bank branch, and checking and savings account statements for the previous 2 to 3 months. You will be required to furnish a list of savings bonds, stocks or investments and their approximate market value. You also may be required to furnish copies of title for any motor vehicles that are paid in full.
  • Verification of Debts: The lender may request credit card statements for the past 2 or 3 billing periods, evidence of mortgage or rental payments, copies of alimony or child support agreements, verification of other debts such as car loans, furniture loans, student loans and personal or co-signed installment loans. Always provide the creditor’s address and phone numbers.
  • Property Information: A copy of the completed purchase and sale contract, as well as a copy of your canceled deposit check if you made a deposit in escrow to the seller, will also be required.
  • Origin of Down Payment: If the down payment is a gift from a relative, you will need a copy of the “gift letter” and a copy of the gift check. The gift letter is a statement from the person gifting you this money stating that it is a gift and will not have to be repaid.
 
 
 

Latest from the Blog

  • Closed Home Sales Down in April After Record Inventory Lows and Rising Prices

    Median Sales Prices Have Seen Year-Over-Year Increases for 19 Straight Months

    WALTHAM, Mass. – May 23, 2017 – The Massachusetts Association of Realtors® (MAR) reported today that low inventory and rising prices caught up to the spring market, with single-family home sales decreasing over eight percent from this time last year. Both single-family and condominium prices saw a hike. Condominium sales decreased almost 10 percent from April 2016.

    April Closed Sales:

    Single-Family April 2017 April 2016 %Change
    Sales 3,735 4,082 -8.5%
    Median Price $362,500 $349,900 +3.6%
    • Closed sales have been down for four out of the last 12 months
    • Median prices have been up or flat for 16 out of the last 17 months
    Condominium April 2017 April 2016 %Change
    Sales 1,455 1,607 -9.5%
    Median Price $345,000 $329,950 +4.6%
    • Closed sales have been down for four out of the last 12 months
    • Median prices have been up or flat for 16 out of the last 17 months

    “With the current trend of plunging inventory and rising prices, the odds were strong that sales increases of the winter market would be unsustainable through the spring,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway. “The demand is there; we just need more homes on the market to satisfy that demand.”

    Inventory and Days on Market:

    Single-Family April 2017 April 2016 %Change
    Inventory 13,234 19,392 -31.8%
    Months of Supply 2.7 4.0 -32.5%
    Days on Market 81 107 -24.3%
    New Listings 7,706 8,513 -9.5%
    • 62nd time in the last 63 months of year-over-year inventory decreases
    Condominium April 2017 April 2016 %Change
    Inventory 1,455 1,607 -9.5%
    Months of Supply 2.0 2.8 -28.6%
    Days on Market 60 78 -23.1%
    New Listings 2,640 2,971 -11.1%
    • Inventory down for 16 out of the last 17 months

    “Unfortunately, our existing level of inventory makes it hard for us to meet our current and future housing needs,” said Yorkis. “If we don’t do anything soon, it will have a negative impact on the entire Massachusetts economy.”

    If you are thinking of buying a home anywhere in the state of Massachusetts, it is in your best interest to work with a member of the Massachusetts Association of Buyer Agents. These men and women are dedicated to working exclusively on your behalf to ensure that you have the best possible home-buying experience. Find a MABA agent here.