What are the steps to getting a mortgage? Shopping for a mortgage is the first step toward owning a home and perhaps the most daunting, especially if you are not prepared. Make no mistake, theres a lot involved in getting a mortgage loan. You wouldnt be here on our site if you could fill out a one-page application and get the best loan for you funded the same day. We do is do most of the heavy lifting for you, so you can concentrate on whats important -- preparing to move into your new home, saving money, or making plans for your home equity check. During the height of the real estate boom, getting a mortgage was as easy as picking out a new coffee table for the living room. Now, home buyers have to jump through rings of fire before they can sign on the dotted line. Today, the first step in landing a home loan is obtaining a letter of preapproval. This means a mortgage lender has verified that you pre-approved for a mortgage of a certain amount over a fixed time frame. Preapproval letters are prepared even before youve picked out your home. They remove some of the uncertainty in the home-buying process. In the current housing market, real estate agents and sellers wont want to work with buyers unless they have one.Mortgage Application Approved at Dallas Mortgage Pros With a letter in hand, buyers know exactly how much they can borrow and therefore how much house they can afford. A preapproval letter shows the seller and the sellers agent that the buyer is capable of buying their house. For most sellers, the issue is not whether they can get an offer, but whether they can close the deal. Agents see preapproved buyers as more serious (and more valuable) because theyve taken proactive steps to secure a preapproval. When its time to make an offer, a preapproved buyer will be in a better position to negotiate. Heres what home buyers need to know about the new rules of mortgage preapproval. Prepare your financial biography. Getting preapproved means a lender must review and verify a home buyers income, credit and assets to ensure he can make the necessary monthly payments on a house. In the wake of the housing bust, borrowers must be more forthcoming when it comes to their finances. Your lender should tell you precisely what you need, but be prepared to include: W2 statements (or 1099 income statements) for the last two years Federal tax returns for the last two years Business tax returns for the last two years (if self employed) Bank statements for the last few months The last 30 days of your pay stubs and proof of other income Proof of investment income A copy of your current property tax bill (if you are retaining your existing home) A copy of your current home owners insurance declaration page (if you are retaining your existing home) To view the steps involved in the loan process click here. mortgageprosus/StepsToGetAMortgage
Posted on: Mon, 02 Jun 2014 11:46:14 +0000
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