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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

  • Pending Sales for Massachusetts Homebuyers Maintain Steady Year-Over-Year Increases for Almost Four Years This February

    WALTHAM, Mass. – March 14, 2017 – The Massachusetts Association of Realtors® (MAR) reported today that ongoing buyer demand pushed pending sales up three percent over last year. Pending sales have been up 47 of the last 48 months, marking almost four years of positive gains in single family homes put under agreement. Realtors® confidence both in the market and in home prices was positive in February. 

     February Pending Sales:  

    Single Family February 2017 February 2016 % Change
    Sales 3,967 3,852 3.0%
    Median Price $330,000 $309,000 6.8%
    • Pending sales have been up 47 of the last 48 months  
    Condominium February 2017 February 2016 % Change
    Sales 1,558 1,566 -0.5%
    Median Price $313,000 $290,000 7.9%
    • Pending sales have been up or flat 17 of the last 18 months  

    “Buyers have been tireless these past four years, showing that the desire to live and work in Massachusetts is strong despite dwindling inventory and rising prices,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway.  

     Realtor® Market and Price Confidence Indexes:  

    Confidence Index February 2017 February 2016 %Change
    Market 75.20 68.66 10%
    Price 77.00 75.70 2%
    • The Realtor® Market Confidence Index was up for the 11th straight month
    • Measured on a 100-point scale, a score of 50 is the midpoint between a “strong” (100 points) and a “weak” (0 points) market condition  

    “This is the highest recording Market Confidence Index for the month of February since we began recording the data in 2008,” said Yorkis. “This speaks to the strength of the market this past year, as well as looking ahead to the spring market of 2017."