Getting Pre-qualified/Pre-approved....
What You Need To Provide At Application

For pre-qualification, all you need to provide is your income, debt and how much you have for a down payment. Then we can tell you what you will be able to spend.

However, there is a big difference between pre-qualification and pre-approval. Getting pre-approved means that you have the money and it allows you to have much more negotiating power when dealing with a seller.

Once you've found the home, you will need additional information for the loan process to flow smoothly. So we’ve put together a list of those things that you will need to help save time, avoid delays and close on your new home without additional delays. The single most important thing to have ready for your broker/lender in our opinion is the Realtor’s name and phone number. Having direct contact with the Realtor from the beginning will make the transition to homeowner much smoother.

Copy of the offer to purchase/purchase and sales agreement

When you make an offer on the home you would like to buy, the realtor or owner of the home (if the house is for sale by owner) will provide you with a copy of your executed (signed by both parties) offer to purchase or purchase and sales agreement. In addition there are many other forms that may be associated with the purchase, including, but not limited to a lead paint disclosure, seller concessions (often listed in the purchase and sales agreement), escrow agreements, termite and pest inspections, etc.

Property information listing sheet

The listing sheet contains all of the information about the new home that you are purchasing and generally summarizes the number of rooms, approximate square footage, the appliances, acreage, etc.

W2 forms - This is used to verify your income and employment history. You and any co-borrowers will need to provide copies of your W2's for the previous two years.

Pay stubs - Your loan officer will need copies of your pay stubs (and those of any co-borrowers). These pay stubs will need to cover the last 30 days of your employ and are used to verify your current income and employment.

Employment history - Your lender/broker will need to get the last two years of employment history. This includes the employer’s name(s), address(es), and the dates you were employed with the employer(s) and income information. If you've experienced gaps in your employment due to layoffs, injury, etc., don’t panic. You will need to provide in some cases a written explanation.

Social security number(s) - Any applicants will need to provide their social security numbers. The main reason for this is so that they can perform a thorough check of you financial/credit history.

Bank statements for checking and savings accounts - You'll need to supply copies of the last three months' statements, including names, addresses, account numbers and balances.  The Lender/Broker requires that all pages of each statement for be provided so that they can ensure that you have the monetary requirements and that your accounts have been kept in good standing.

Credit information - This is now primarily done through the Lender/Broker obtaining a copy of your credit report.  However, if during your review with the Lender/Broker you realize that something did not come up, you should bring it to their attention, better for them to know about it now, than later. Depending on the loan that you are applying, if you have had credit issues, you will also need to include a letter of explanation for them. Some loans do not require this extensive explanation process.

Tax returns - You will need to supply your last two years' personal federal income tax returns and all pages, all schedules if you're:

• Self-employed
• An Independent Sub-contractor
• Receiving all or a large part of income from bonus, commission, partnership or trust income
• Own rental property
• Earning income from an otherwise non-verifiable source, such as corporate ownership, installment sales and tips

If you’re self-employed, you may be asked to supply a profit and loss statement to the lender/broker as well.

Stocks, bonds and investment accounts - If these are being used for your house purchase or to meet lenders/brokers reserve requirements you will be asked to supply the name and address of your broker and copies of the previous three months' statements or stock certificates.

IRA/Retirement plan - If you have an IRA, 401(k) or other retirement plan, you'll need to provide the approximate value of your vested interest and copy of your most recent statement.

Life insurance policies - If you have no other cash reserves (like stocks or bonds), your lender may ask for the name of your insurance company(ies), policy number, face amount and approximate cash value of each policy.

Automobiles Owned - Your loan officer will need to know the make and year of each automobile owned and its approximate current market value.

Construction loan - If you're having a new home built, your loan officer needs a copy of your signed construction contract, including the cost breakdown and builder plans.

Gift letters - If part of your down payment or closing costs is a gift from a relative, the lender will require that they provide a signed letter from the donor to verify that your are not required to repay the funds. This is a form letter that can be provided to you from your lender/broker. When it comes to receiving a gift from a family member or a charity, it is always best to talk to your lender about this in advance, during the application process.

Other income - If you're using other income to qualify, like interest or dividend income, trust income, social security income, lottery payouts, etc., you will need to provide documentation to your lender for any funds received in the past 12 months.

If you are renting currently...You will be asked to provide your current landlord's name, address and phone number and previous 12-month rental payment history. Canceled checks and rent receipts are acceptable. If these are unavailable, explain this to your lender/broker up-front as they can request a verification of rent from the landlord.

If you are divorced or separated...You will be asked to provide the lender/broker with a copy of your separation agreement and/or divorce decree, along with any amendments. If payments are received and are needed to qualify, your lender needs a 12-month payment history of alimony/child support payments. You must provide check stubs or copies of both the front and back of the checks. If checks cannot be provided, support payments that you receive must be documented by providing proof of deposits into your bank account. Another thing is that if you are obligated to pay alimony, child support or separate maintenance, the separation agreement and/or divorce decree will spell out the exact amount paid, to whom, and for how long. As this is an obligation, you will need to disclose this information up front to your lender/broker.

If you are a student...If you don't have two years of employment history because you were attending school (high school, college, trade school, etc.), then your school transcripts or diploma will be needed.

If you own rental properties...You need to provide signed Federal tax returns (all pages, all schedules), along with a schedule of all real estate owned and the account number and address of the mortgage company that holds the properties.

If the real estate owned is...

• Currently rented...
  you will need to provide a copy of the current lease or rental agreement.
• Listed for sale...
  you will need to provide a copy of your listing agreement.
• Sold, but not closed...
  you will need to provide a copy of the sales contract and escrow number.
• Sold, closed and proceeds will be used for down payment...
  you will need to provide a copy of the HUD-1 Uniform Settlement Statement.

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