How to Prepare Your Transferees for the Mortgage Process?
When you are working with employees who are planning on purchasing a home as part of their relocation, the first thing they should do is apply for a mortgage pre-approval. By completing their mortgage application prior to choosing a home, they will be able to obtain a pre-approval letter that lets them know how much home they can afford and how much they can spend. Even if your employee has qualified for a mortgage previously, the lending guidelines have changed so significantly, they will definitely want to know upfront what they are able to qualify for in today’s market. Receiving a pre-approval letter also shows prospective sellers and real estate agents that the employee is a serious buyer.
We also recommend that the employee immediately begin gathering the following information before they start packing their belongings and, if applicable, putting their personal effects in storage:
1) Two months most recent bank statements. All pages are necessary even if they are blank. The transferee will also need proof of any and all large deposits made during that time period.
2) Most recent financial statements (all pages) inclusive of 401k, IRA, money market, etc.
3) Two years W-2’s from all employers. In most cases tax returns are not needed.
4) 30 days of most recent paystubs.
5) Fully executed offer letter for new employment or job transfer.
6) Loan information on any real estate that is being retained (current mortgage statement, tax bill and insurance premium if not included in mortgage payment).
In today’s credit market it is critical that all employees engaged in a relocation that are planning to purchase a home at the destination be as prepared as possible and that process begins with the gathering of all critical documentation and the mortgage pre-approval.
Posted on 11/9/2009 in Mortgage | Comments (0)
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