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The Mortgage Loan Approval Process

Applying for a Florida Home Loan

For many buyers, applying for their Florida home loan is one of the more stressful aspects of buying their new Southwest Florida home. The home loan approval process need not be that way. The primary issue, usually, is not being able to speak with someone who already has the answers, right up front. The key in the loan approval process is finding the right person to assist you. And, by following a few additional easy steps, you should sail through the loan application process. It's not rocket science!

Lending changed this past year so be prepared to be patient! Many loan originators went out of business, so that means the lenders still open to the public are inundated with requests for both refinancing and purchase mortgages. Typically, we recommend that you start two months prior to your actual search for a home if possible.

You'll also be required to own a pretty spotless credit record. If you know of credit issues, then it helps to start working with a lender now to show that you are preparing to become a homeowner. By making an application now, the lender will obtain a credit report and help walk you through what needs to be addressed. Many buyers will look to obtaining a credit report from one, or more, of the various bureaus. However, the lender's credit report is more in-depth and will portray your scores more accurately. A personal credit report does not always reflect the score that the lender will see or use.

The general paperwork on a loan is still in effect. What you will need is two years of Federal tax returns with all schedules, W-2s, 1099s, etc. One full month of payroll stubs will be required, along with two to three months of bank statements for all of your assets, including retirement accounts. Remember that you need all the pages to the bank statements, even if they are blank. If you own a home now, and are buying a second home, you'll need the mortgage, taxes, and homeowner's insurance information to prove what your current home costs are to the lender. If you happen to be self-employed and own a corporation, then you'll also need a year to date profit and loss, preferably one prepared, signed, and dated by your accountant, and two years of your corporate tax returns in addition to your personal return.

These are not all of the requirements for a loan approval, but they are a good start. Since everyone's personal situation varies, so will the paperwork you'll need to provide.

So, be prepared with your income and assets, sales price, employment history, and knowledge about your debts. Just a little preparation on your part will pave the way for a very smooth and quick loan approval.

Our Florida Mortgage Library

For information on other Florida home loan related topics, please use our Florida Mortgage Information Library. It's full of residential lending information to help you successfully apply for a home loan.

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Page Authored by Benjamin Dona of Gulf Coast Associates, Realtors