Bank of America mortgage documents are essential to prepare when a homeowner or homebuyer is planning for a mortgage. Once a suitable house is found according to budget, preferences, and need, then it’s only wise to apply for Bank of America Home Loan. A lender has to be picked then, followed by filling a loan application. Depending on which lender, a homebuyer may apply directly, or through online and phone call. Every lender will require loan applicant to provide detailed information about applicant and relatives, such as partner or spouse. That person will then be considered a co-borrower for mortgage.
Bank of America Mortgage Documents and Application Process
Plenty of Bank of America mortgage documents are needed to complete the entire application process. A homebuyer and his/her assigned co-borrower have to provide their lender with documents. That is needed to verify overall economic situation, employment history, and worthiness for Bank of America Credit. Six things are needed such as W-2s in the previous 2 years, recent pay stubs which covers 30 recent days, complete bank statements. Others needed are signed business and personal tax returns, copy of loss/profit statement, and copy of signed sales agreement and purchase.
Required Bank of America mortgage documents vary each lender, depending on circumstances and chosen mortgage type. Expect lender to ask details regarding financial and employment history afterwards. With a homebuyer’s permission, a lender will run homebuyer’s credit report too as part of its process. A homebuyer’s credit score may affect interest rate, keep that in mind.
Make sure to take up as much time as possible to carefully fill out application for Bank of America mortgage documents. It has to be filled out accurately and entirely because it will determine whether a homebuyer can qualify or not. Not disclosing issues on credit or holding back needed documents will only delay process or even prevent approval from happening. That’s why it’s beneficial to completely disclose any finance-related information.
Bank of America Mortgage Documents Rate Lock
After completing Bank of America mortgage documents, it’s important to keep in mind that interest rates frequently fluctuate. It can change quickly between loan appliance date and loan closing day. In order to protect homebuyer from increasing interest rates, consider locking interest rate with assigned lender. That can ensure that loan terms used to build a homebuyer’s budget are locked.
Soon as applying your Bank of America mortgage documents, there is a thing called rate lock. It is also known as rate commitment which is a homebuyer’s lender’s assurance. It means that discount points and interest rate are guaranteed until rate lock date expires. Lender will provide with rate lock terms to a homebuyer in written form. That includes discount points chosen to pay, agreed-upon interest rate, and length of rate lock.
Completing Bank of America mortgage documents means that a homebuyer is ready to accept all conditions and terms. If a homebuyer believes that interest rates will probably decrease soon, waiting to lock interest rate may make sense. After all, it’s a personal choice as when to lock the rate. Rate has to be locked in advance to lender preparing closing documents.