The essential first step in the home buying process is a “prequalification” interview with a knowledgeable and experienced loan agent. This important first step will help you set the perimeters of purchase price and monthly costs. You can then make your home buying decision from a position of financial strength, with confidence that you have the ability to complete the purchase.
PREQUALIFICATION indicates an informal interview with a loan agent. The loan agent reviews the information you provide, and makes a statement that you are qualified to obtain a loan.
PREAPPROVAL takes the process several steps further. In a preapproval, the loan agent makes an actual verification of your income, assets and creditworthiness.
To expedite the process, you’ll want to collect the as many of the following documents as possible to bring as you met with the loan agent
——————————————————————————–
YOUR IDENTITY
Copy of Driver’s License or State ID
Copy of Social Security Card
Copy of Resident Alien Card
YOUR INCOME
2 current paystubs (most recent)
2 years W-2s (most recent)
2 years tax returns (most recent)
If self-employed – current Profit and Loss Statement
YOUR ASSETS
Bank accounts: Name of bank, address, account number, balance
Copies of 3 months bank statements (most recent)
Stock and bonds, IRAs, Mutual funds (copies of most recent statements)
If down payment is a gift – gift letter from donor
YOUR CURRENT DEBTS
Creditor’s names, addresses, account numbers, balances due
Name, address, account number, and phone of landlord or current mortgage
12 months canceled checks for rent or current mortgage
If negative items on credit report, letter of explanation
OTHER REAL ESTATE OWNED
Present value
Balance due on mortgage: Name, address, account number of mortgage holder