when applying for a mortgage what information do you need to provide?
I am going to see a broker tomorrow and they said to bring a list of expenses - what should these include (I mean what categories?) Also I am self-employed so what evidence of earnings should I provide? Do I need to give tax returns or just a letter from an accountant detailing my earnings? thanks! By the way, I am in London, UK! Thanks for the info - but when listing my expenses should I include my rent? I mean, when I get a mortgage I will no longer be renting so surely this is not considered as an outgoing for the purposes of assessing how much I can borrow? Also just wondering if there is any definite rule as to what evidence one requires if they are self-employed - i've been told by some it's tax returns but others say that's not necessary. thanks...
Renting & Real Estate - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
take a letter from your accountant and like 3months credit card history
Answer 2 :
they are looking to see that your monthly income and monthly outgoings wil leave sufficient funding to repay a mortgage. they will want to see ,water bill,s phone, car, heating, light,gas, plus any other outgoings you have such as petrol cost and tools or whatever. in short they want a break down of your entire outgoings versus in-comings. then they deduct one from the other and offer a multiplier to arrive at amount they wil b willing to lend you.
Answer 3 :
If you're going to see your broker for the first time tomorrow and haven't been pre-approved, you don't need anything. They're just going to take your word for it when estimating how much you can afford. A pre-approval isn't any kind of legally binding figure. It's just an estimate. At the time of the pre-approval, your broker will tell you what documents you'll need when actually applying for the loan. And, you won't need to produce that until you get an offer accepted on a place. But, in general, you need tax returns for a couple of years, bank statements, and investment account statements (retirement accounts, stock portfolios, etc.). The broker will run a credit check that will list all of your debts. If you were employed, you also might have needed an employment verification letter. If they need anything besides that, the broker will let you know.
Answer 4 :
You need to provide evidence of income. As you are self employed you will have to provide copies of your accounts - a profit and loss account should be sufficient. I assume that they would be more comfortable if you have several year's accounts to show that you have a stable business. As for expenses they are most interested in other loans, credit cards and similar commitments, such as child maintenance etc. They will also ask about monthly bills, but they are only going to have an impact if your usage is way above average. They certainly won't be interested in expenses that relate directly to your current house, such as rent.
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