Purchasing a home may be the largest purchase of your life, proper planning will build your confidence and make the process smoother.
How much can I afford? What do I need for a down payment? How about different mortgage programs?
Getting Pre-Approved for a mortgage can answer all of these questions, it’s a smart place to start.
What documents will I need to provide?
The Pre-Approval process may require just a few key documents, but eventually the Lender will need the following:
- Current year W-2’s and K-1’s (if any)
- Last years W-2’s and K-1;s (if any)
- Last years tax returns (all pages)
- Two years tax returns for self-employed borrowers (all pages)
- Two of your most resent pay-stubs
- Two of your most resent bank statements (all pages)
- Two of your most resent investment statements (all pages)
- Those receiving a gift will need to provide a gift letter and proof of receipt of funds
- Copy of Drivers’ license(s)
Additional documents may be required, but this list represents a great start.
What do my credit scores say about me?
Credit scores are very important in today’s mortgage environment as your scores will significantly affect interest rate and origination cost(s). A single point one way or another may cost you thousands in Origination costs (points). The mortgage lender will obtain credit reports from all three agencies (Equifax, Trans Union and Experian) and use the lowest middle score of all Borrowers. The reports will also include a public record search, past addresses and sometimes employment references. Get pre-approved with one of our experienced loan officer and review your credit report, a single score from an on-line service does not tell the whole story.
Can I improve my scores?
In many cases yes, but it takes time so it’s important to get started on any revisions before you’re in escrow.