5 Things You Will Need To Get Pre-Approved For A Mortgage

Getting approved for a home loan can be exhausting, but you can make things easier by getting pre-approved. Getting pre-approved gives confidence to the seller that you are a serious and credible home buyer. You’ll want to make sure you have the following documentation ready to make the whole process quick and easy. With that said, here are five key things you’ll need to get pre-approved for a home loan.

1. Income Proof

One of the first parts of your financial situation a lender will look at is your monthly and yearly income. If you can’t show that you can easily pay your bills every month, there’s less chance that you’ll get pre-approved. To prove your income, you usually need to provide past two years’ W-2s, pay stubs for the last few months, past two years’ income tax returns, and any other income like child support or social security benefits.

2. Verification of Employment

In addition to your income, you’ll also want to get employment verifications also known as VOE. This will show lenders that you have a stable job and more likely to pay your bills and mortgage payment every month. You’ll want to provide an official letter from your job, as well as complete contact information. Be advised, that the lender might want to talk to your previous employer if you’ve recently changed jobs.

3. Asset Proof

You’ll also want to have a copy of your bank statements and any investment account statements. Not only will the lender want to make sure you have plenty of money for the down payment and closing costs, but also that you have a cash reserve. Different lenders will be looking for different amounts and different programs require different down payments, so making sure you have plenty saved is an essential step to getting pre-approved.

4. Good to Excellent Credit

Most conventional lenders will require you to have a FICO score of at least 620 to get pre-approved. Those that have a FICO score of 760 or higher will get access to the lowest and best rates, while those with a FICO score of 580-619 will get the higher interest rates. Remember, all lenders will have different specifications and requirements, so you might need to shop around.

5. Other Documentation

The final thing you’ll want to make sure you have is any other documentation required depending on your financial situation. There are many things that you might have to provide, like a photo ID, reference letters, and your social security number. If possible, talk to your trusted mortgage professional and get a list of everything required to process your pre-approval application.

Once you have these documents submitted, your mortgage broker will find the best lender and loan scenario that best fits your home owning goals. If you need help or have any questions, reach out to one of the top mortgage brokers in Huntington Beach, today!