Application Documents

Due to the current economic conditions in the US and Internationally there is a great opportunity for homeowners to refinance and reduce their interest rate and monthly obligations. It is important to make sure you have saved the proper documents and have them ready when the time is right to lock. Being fully prepared will help relieve stress for you and your mortgage company and expedite the process.

Below is a list of standard documents you should have:

1. 2007 and 2006 W-2's, 1099's, or Tax Returns
2. Contact information of someone who can verify your employment
3. Most recent two bank statements for any checking or savings accounts
4. Most recent IRA, Pension, or other retirement account statement
5. Information on any other properties you currently own
6. Homeowners Insurance Declaration Page and Agent contact information

Depending on the situation, you may or may not need to provide all of this information, but the more you have available, the easier it will be to approve your loan quickly and under favorable terms.

It is no surprise that Real Estate Values in Michigan have been appreciating less than most of the nation and declining significantly in some areas. Because of this trend, the most important part of the application process during this refinance boom will be the appraised value test. You may find that your house is worth 10-15% less than it was worth 6 months ago. Please consult with a mortgage professional and or a licensed appraiser to get an idea of what your house is worth in the eyes of the bank right now.