What Documents do I need to gather to start a Mortgage Pre-Approval Process?
Two government ID’s, Last two year’s of W2s, Last two year’s of Personal Tax Returns (business taxes if applicable), Paystubs for the last 30 days, Last two Bank Statements.
What does a lender look for to determine an approval for a Mortgage Loan?
We look for the 4 C’s; **The capacity to pay back the loan, Capital, Collateral, and Credit. Capacity to pay back the loan would be based on the review of your income, employment History, savings and monthly debt payment and other financial obligations such as child Support or alimony. **Capital if you are putting a down payment the lender needs to source those funds. Gifts from family, down payment assistance program, grants are all acceptable as a source Of Capital **Collateral This is based on conducting an Appraisal on the property you are buying, the Lender uses this as collateral as a security against the loan. **Credit- this helps the lender see your record of paying bills and other debts on time, Your credit score determines what program/s you may be eligible for.
My credit is not very good, how can I improve it to qualify for a Mortgage Loan?
We have a credit simulator that guides our clients with steps to take to increase their credit scores.
How do I qualify for a Mortgage Loan?
The first step would be consulting with a loan officer. They will want to learn some basic information about you and your financial situation, and this will be the time to express your concerns and get your questions answered. A good loan officer will walk you through all the steps and answer all of your questions. Then comes the paperwork! Once you have decided to move forward with the pre-approval process, you would need to be ready to provide them with information about where you work, your income, and any debts and assets you may have.
What is the difference between being prequalified and preapproved?
A simple conversation with your lender about your income, assets and down payment is a prequalification, but if you want to get preapproved, you will need to provide your lender the documents requested and be submitted through preliminary underwriting.
What information would I already need to know when I reach out to get a Mortgage Loan?
It’s helpful to know up to how much you would like to put down for a down payment, and up to how much money you feel comfortable paying as a monthly mortgage payment.