Step 1 The Qualification
The Pre-qualification process isn't difficult, but it is one of the most important steps in the pursuit of buying a home. This process allows you to see how much home you can afford and brings awareness to the items that are on your credit reports. However, being Pre qualified does NOT guarantee that you will be able to purchase a home. It is not recommended that you go looking for a home based solely upon a pre- qualification.
- Pre-Qualified vs. Pre- Approved-
Making loan application first is, in our opinion, the best way to start. When are pre-approved first, you will be absolutely sure about your financial capability. With that in mind, you will be more confident about the home you can afford and the price range you should search in. Being pre-approved up front will save you a lot of time, and will cut back on the frustrations that are involved when you first look for a home prior to learning what you can afford. It can be very discouraging to spend a lot of time and energy finding a dream home that suits your needs only to find that your dream isn't going to be realized until pre- approval is in place.
Sadly, this scenario happens to 4 out of 5 buyers. Don't become this statistic!
Items a loan officer will take into consideration when you apply for Loan Application:
SECTION: 1-A
Employment: |
Credit: |
Last (4) check stubs (2 minimum) |
-Copies of last 3 mos. bank statements |
Last (2) years work history |
-Creditors Debt vs. Monthly Income (Debt-to-Income Ratio) |
| Last (2) years tax returns |
-Additional Account(s) (Checking or Savings) |
*Copies of Divorce documents, Bankruptcies, Foreclosures, etc.
*Every mortgage company has different procedures and
guidelines. It would be best to consult your Realtor or Loan Officer concerning
this matter. Finally, after you have been approved, the home searching can truly
begi
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