Getting pre-qualified for a loan
to your loan application meeting and the start of your search for a new
home, you may want to speak with a lender to get pre-qualified for a loan.
A pre-qualification is an unofficial estimate of the home you can afford.
This will help you concentrate on a specific price range of home, and
save you time so you won't be looking at properties well over the price
that you can afford to purchase.
Here is some information that you might need at your loan application
- Driver's license(s) and social security number(s)
- Addresses for past two years residences
- Names, addresses and phone numbers for all employers for the past
- Self-employed applicants must provide: 2 years tax returns (business
and persona, all schedules and K-1s) and current year to date profit
and loss statement, prepared by an accountant
- Commissioned applicants must provide: 2 years tax returns and current
paystub reflecting year-to-date earnings and expenses
- Names, addresses and account numbers for all depository accounts for
checking, savings, brokerage accounts, etc. Balances must be provided
as well as copies of the three most recent statements
- Names, addresses and account numbers for all creditors (banks,finance
companies, credit unions, credit cards, student loans, etc.) Balances
must be provided.
- Copy of complete separation agreement and divorce decree
- Copy of lease(s) on rental property if owned less than two years
- W-2s for previous 2 years or 1099s if applicable
- Most recent pay stub(s) covering a one month period
- Check for credit report and appraisal.
- DD214 or Certificate of Eligibility (VA Loans ONLY)
- Copy of contract on current home if applicable, or settlement statement
of current sold property sold if applicable.
- Evidence of satisfaction of any judgments, collections or public record.
- Bankruptcy filing and discharge papers
You also have the option to get pre-approved for a mortgage loan. Having
your loan pre-approved means that a lending institution has processed
your loan application and approved a specific mortgage amount based on
your income, debt and credit scores. Some buyers feel that they have more
negotiating power when they can provide proof of pre-approval to the seller
of the property.