Getting ready to open the door to the next chapter of your life as a homeowner? Consulting with HomeSure Lending and getting pre-approval before you start the home buying process can save you a lot of heartache. Speak with us about your loan options, your budget, and learning the maximum you can expect to borrow. Get your credit report and verify your documentation early in the process for pre-approval.
Make sure you get pre-approved before you start looking for a home! Along with giving you an idea of what sort of interest rate you’ll be able to get, it lets you know your price range so you can better target your house hunt. Pre-approval lends you credibility over other potential home buyers and gives you strength when negotiating.
To get pre-approved, you’ll need to have us pull your credit and provide proof of income, proof of assets, proof of employment, and other documentation. It seems like a lot, and it is, but don’t worry. We’ll walk you through all of it.
You want the lowest rates you can manage. A credit score of 740 or above will get you there. To be approved for an FHA loan, you’ll need a score of no lower than 620, and in some cases 580. Ask your HomeSure representative for advice on improving your credit score.
Proof of Income
Be prepared to provide W-2 statements, pay stubs and your tax returns from the past 2 years. Proving your regular income is important. Also provide proof of other income such as alimony, bonuese, or part-time work.
Proof of Assets
Have recent bank statements ready to give to your HomeSure consultant along with any investment account statements such as IRAs, 401Ks, and retirement funds. An underwriter will want assurance you have sufficient funds to pay for closing costs and down payment. He will also want to make sure you have money in reserve for “just in case.” Depending on the type of the loan, your down payment could be anywhere between 3.5 to 20 percent. If a friend or family member plans to help you by paying all or part of your down payment, you’ll have to provide a “gift letter” to prove it is not a loan.
You could think of this as proof you exist. Driver’s license and Social Security number are the big ones, but your lender may request additional documentation as well. Provide it as quickly as possible to keep things in motion. You’ll also need to provide a signature authorizing a credit report to be run. It seems to drag on and on. We know! The more cooperative you are, the smoother the whole process will be.
Proof of Employment
Pay stubs will prove employment. There may be a call to your place of employment to verify salary. If it’s a new job, your previous employer may also be contacted. Lenders only want to lend to borrowers with stable employment. The self-employed are often required to provide paperwork beyond and in addition to what’s already been outlined above.
Really, the best advice is to be well prepared for your first appointment with your HomeSure lending representative. Gather everything you can from the items mentioned above and you’re a big step closer to pre-approval.