Are you looking forward to applying for a mortgage loan? If so, this is a step in the right direction when planning to own your dream home. After all, you will get the financial assistance you need to buy a house and safeguard your future and that of your family members.
But just as the case with any other type of loan, there are a few documents you need to have with you before filling and submitting the application form. Here is the list of documents every mortgage applicant must supply before they can finally get a loan approved.
Income Tax Returns
Mortgage lenders always examine your full financial information to determine whether there is stability and consistency. Actually, this is the only way to tell if you can afford refinancing HDB loan. In this case, you have to submit your income tax returns for the past 1-2 years. This will mean providing Form 4506-T as it gives them permission to get your tax transcript directly from the IRS.
Proof of Income
Proof of income is also a must-have if the lender is to have an idea of your financial situation and come up with the best home loan interest rate Singapore. Therefore, you can include pay stubs from the last 30 days with the employer’s signature depending on mortgage lender you rely on. Self-employed individuals will have to produce other proof of income documents including child support, direct deposits or 1099 forms.
Bank Statement
Mortgage lenders will ask for two to three months’ worth of bank statements to find out more about your savings balances, income, and source of your down payment. Aside from the bank statement, they may also request for other investments assets such as life insurance. Keep in mind these documents can impact your home loan interest rate Singapore.
Gift Letters
Depending on the mortgage lender you rely on, you may be free to use gift funds to cover the down payment. If a friend or family members chips in to give you down payment money, they must sign a gift confirming you’ll not pay it back. Ensure the documents indicates the relationship together with the amount of money they offered.
Credit History
Your credit history plays an important role when applying for a mortgage loan. But that’s not to say you should submit a copy of your credit reports. Instead, the mortgage lenders will request permission to check your credit history. However, you must be ready to provide a written statement in case you have negative items on your credit report.