For many first-time homebuyers, one of the common challenges is the amount of money needed…
How To Be Prepared Before Speaking To a Mortgage Lender
Ready to start looking for homes? Here’s how to be prepared before speaking to a mortgage professional.
First, let’s talk about pre-qualification vs pre-approval. Pre-qualification is basically getting an estimate of how much you can afford in a home. This is just to give you (the borrower) a general idea and range. When talking about pre-approval, this is where all the paperwork you need comes into play. This step is to verify your financial information and get a more exact range of what you can qualify for. A pre-approval will help you when it comes to budgeting and house hunting. Quick Tip: It’s always smart to know what your budget is before browsing for available houses in your area.
Our website offers a 60 second pre-qualification questionnaire.
When you’re ready for the pre-approval step, you need to get all your documents in order. Listed down below are the most common forms needed to have on hand when speaking to a mortgage lender. Be sure to know that sometimes lenders will ask for additional paperwork that is not listed below depending on your situation.
-
W-2 Forms and Other Tax Forms (1099’s)
-
Pay Stubs (proof of income)
-
Bank statements- Last 2 months (assets, retirement and brokerage accounts)
-
Monthly debt payments
-
Identification (drivers license, social security and or passport)
All of these documents are important when trying to figure out what you qualify for. At Home1st, we also have a mortgage calculator tool . Be sure to check it out–just remember that the number it gives you will only be an estimate though. If you want the most accurate information, we suggest getting in touch with a licensed mortgage expert.