How Do I Get a Mortgage Loan Pre-Qualification?
Getting pre-approved for a home loan can be a daunting experience. You’ll want to find a mortgage lender that you’re especially comfortable with, since like your realtor, you’ll work closely with this person for potentially a few months. Even if this is not your first home loan, the process is much tighter than in past years.
Ask your agent for a referral if you don’t already know whom to choose. Your “mortgage originator” will sift through your financial history to determine how much you can borrow, how much you can afford, and which loans might be right for you. Applying for a home loan requires a written application and supporting documentation, so don’t be offended when they ask for such things. It can be a slightly intimidating process and there are a few things you should be ready for when meeting with your mortgage lender.
1: They will check your FICO score.
Knowing your credit score will give lenders an inside look at your credit habits and history and will help them convince the underwriter that you’re a good candidate for a loan. Credit scores are ranked on a scale of 300-850 and the higher the better.
2: They will check your employment history.
Lenders ask for a list of your past employers, how long you’ve been with your current employer, and what your annual salary or take-home pay is. They want to make sure you consistently earn money, with no major gaps in income, and can make consecutive mortgage payments.
3. They will check your assets and debts.
Be prepared to show your past tax records, recent bank statements, and current debt amounts, including credit card debt, car loan, or student loan. Lenders want to know your debt-to-income ratio to know if you can make each loan payment with the income you earn.
(Copy paraphrased from RE/MAX flyer Smart Buyer)