A few things to know before you start.
Getting pre-qualified is convenient. Here’s what we’ll need from you:
- Your name(and any other buyers’ names)
- Current address
- Estimated annual household income
- Estimated monthly household debt expenses
- Social Security numbers for borrower or borrowers
After evaluating your income, assets and employment, your Loan Consultant can give you an idea of the mortgage amount for which you may qualify.
The loan approval process generally begins with an initial interview where you and your Loan Consultant will discuss the your income and long term debts. This step is called pre-qualification* and it can help you shop for affordable properties in the correct price range.
Ability to Repay
When a lender makes a decision about a mortgage application, they consider many basic factors: all based on your ability to repay the loan. To ensure your loan is truly affordable, a lender will verify your employment and income. Your monthly Debt to Income ratio – your total income, minus monthly credit payments and other debts — will also be considered.
*A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.
What documents are part of the mortgage process?
“Mortgage paperwork” is mostly about providing documents that show how much you earn, where you’ve lived, monthly debts and account balances. You can provide much of this information in person or on your application; however, there are several additional documents you may need to provide depending on where you are in the loan approval process.
Mortgage pre-qualification is an assessment of whether your debt-to-income ratio fits mortgage guidelines and provides an estimate of the amount you may be able to borrow. You can also request a pre-qualification letter, which you can give to your real estate agent to show you are a serious home buyer. Pre-qualification is optional, but it’s a helpful step in the process of buying a house.