Congratulations! You’re ready to buy a home. Whether this is a “first” or you’re looking to upgrade, homeownership is a big deal. Since a mortgage represents a long-term financial commitment, the process of applying and ultimately closing on a mortgage can cause a lot of stress. To simplify this process, NEFCU - a leading credit union serving all of Long Island’s banking needs – has created the following guide regarding document preparation during the mortgage application process.
Items to keep at hand during the mortgage application process:
Pay Stubs and W-2's
You will be asked to provide the two most recent pay stubs and W-2’s for all borrowers. If you are retired or receiving Social Security, you’ll need to supply your pension and/or Social Security award letters. Pay stubs are used to verify compensation received from your employer, e.g. monthly or bi-weekly; W-2’s validate annual income.
Federal Tax Returns
If you are self-employed, you’ll need to provide copies of your last two year’s Federal Tax returns (1040s) and business tax returns including all schedules.
Identification
All applicants will need to show a government-issued photo ID, which may include a valid driver’s license or passport. A Social Security card may also be requested.
Contract of Sale
A contract of sale is a signed agreement between the buyer and seller describing all the terms of a real estate purchase transaction - also known as a sales contract.
Copy of Down Payment Check
You will get all the information needed for this check from your lender.
Asset Statements
NEFCU will need to know the source of your down payment and closing costs. Copies of statements from these sources will be required. These can be statements from personal and/or business checking, savings, brokerage, retirement, and money market accounts. Typically, borrowers are asked to send statements from the previous two or three months, or those which include sources of income or large deposits.
Realtor Info
The name and telephone number of your Realtor.
Items obtained from your lender include:
Borrowers' Certification and Authorization Form
This document certifies that the information provided by the borrower(s) within the loan application is correct. The signed document authorizes the lender to share loan application information with other parties, such as the closing attorney. It also gives the lender the right to verify information on the loan application, credit report and employment history.
IRS Form 4506-T
This is a Tax Transcript form required for all mortgage applications and gives the lender permission to verify the income reported to the IRS. It is usually requested for the previous one or two years.
Upfront Fees and Credit Card Authorization Form
This document gives the lender authorization to collect applicable application and related fees using the borrower’s credit card, e.g. application fee and appraisal fee.
Getting all of the necessary paperwork and forms compiled and completed will help you get a head start on your mortgage application and make the process efficient. At NEFCU we have a Checklist of Required Documentation that outlines our requirements so members can be organized throughout the process.
It’s important to consult with a qualified lender to find the best “mortgage fit”. NEFCU offers a variety of mortgages suitable for your financial situation plus an online resource center to help you research products, receive rate quotes and apply online any time. Experienced Mortgage Representatives will work with you to find the term and product best suited to your situation. For questions or more information, call NEFCU’s Mortgage Team at 516-561-0300, email mortgageinfo@mynefcu.org, or visit http://www.myNEFCU.org.
NEFCU is one of Long Island’s leading not-for-profit full-service financial institutions that proudly offer its affordable banking services to all Long Islanders. With over $2 billion in assets and over 160,000 members, NEFCU is headquartered in Westbury, NY and has branches and a shared branch network throughout Nassau and Suffolk Counties. To join NEFCU, eligible members must live, work, worship, attend school, or regularly conduct business in Nassau and/or Suffolk Counties (excluding the townships of East Hampton, Southampton and Shelter Island). Existing NEFCU members may also sponsor in immediate family members or household members.
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