An Easy Process With Big Benefits!
If you are looking for your first home or thinking of upgrading to a bigger location, getting pre-approved for a loan can be a huge advantage. Having this process taken care of has a multitude of benefits including locking in an interest rate, helping you budget correctly, giving you a solid plan for your next steps, and gaining access to property showings that would otherwise be restricted!
But how easy is it to make this happen?
The answer is simple: extremely.
In this article, we will let you know the 5 things that you will need to get it done quickly and efficiently.
Proof of Income
For a pre-approval, buyers generally must produce W-2 wage statements for at least the past two years, recent pay stubs, proof of any additional income such as bonuses, and the two most recent years’ tax returns. Making sure that you are keeping this information in your personal records will make this a breeze and also help you in any other financial objectives you may have in the future.
Employment Verification
Generally, lenders will want to make sure that any borrower has stable employment. On top of seeing your past two years of income, they will often want proof of your current employment and salary. It is even possible for employers to verify your employment by reaching out to your employer themselves.
Good Credit
In most circumstances, lenders will require a minimum FICO score in order to approve a conventional loan. This score can vary but it will generally be around 620 or higher. It is important for the lenders to know your credit score so they can help guide you on realistic expectations for minimum down payments and monthly payments.
Proof of Assets
Once the lender has seen your current proof of income, employment verification, and seen your credit score is acceptable, the next thing they will want to see is your proof of assets. You will need to provide bank statements and investment account statements which can prove that you have the funds available for your down payment and closing costs.
Other Documentation
The final things you will need to provide will revolve around your personal information. You will need to provide your driver’s license, social security number, and primary contact information!
Consulting with a mortgage broker before you begin your home buying process is extremely easy and generally non-time consuming. The benefits can save you a lot of headaches and heartaches when on your home buying journey.
If you are currently interested in getting pre-approved, our team at California Lending Company would welcome a chance to assist you! Give us a call and let’s get things started!
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