| Obtaining pre-approval is more formal process than prequalification that includes a credit check and employment verification During a pre-approval, the mortgage company does all the work of a full approval except for the appraisal and title search. These items can’t be done until you choose your home.
If you’ve been pre-approved for a loan, you can shop for a house with more certainty and less anxiety because you’ll be able to sail through the entire process without having to worry about whether the mortgage will be approved. Additionally the seller is likely to view you as a more capable buyer. This can give you an advantage as a buyer in the marketplace, especially when the seller is considering multiple offers.
What to take to your loan application appointment:
· Copy of the executed sales contract and property data sheet (if you’ve chosen a home)
· W2 forms—2 years and Employment history information
· 12 months documentation of any other income
· Social Security Number(s)
· Full bank statements—3 months
· Information on each open credit account. Explanation of any credit problems
· Tax Returns—2 years
· Investment statements—3 months
· Details of automobiles owned
· Gift Letter—if part of your closing costs will be from a gift
Special Requirements:
· VA Loan—Certificate of VA eligibility
· Renting—provide landlord’s contact info and 12 month rental payment history
· Self Employed—2 years profit an loss statements
· Divorced or Separated—divorce decree and 12 month payment history of child support
· Student—School transcripts or diploma if you don’t have 2 years employment history
· Rental Property Owner—signed tax returns, lease agreements, mortgage information |