Things You Require to Get Pre-Approved for a Mortgage

For Home Loan Pre-Approval, you’ll just need 5 things—employment verification, good credit score, proof of income and assets and another kind of documentation that your creditor may need.

 

So, before you Apply for a home loan, read this blog to navigate this lane efficiently. Here is detailed information on what you require to get pre-approved for a home loan. 

 

1.     Proof of income 

As a first-time homebuyer, you should create a statement of your wage from the past 6months to 2 years. Your w-2 wage statement should consist of: 

• Proof for any kind of additional income such as alimony or bonus. 
• Overall salary and year-to-date salary. 

 

In addition, you also need to produce proof of tax returns for the past two years. 

 

2.     Proof of assets 

You’re required to produce statement account and bank statements as it is a crucial aspect when it comes to down payment. The down payment, however, varies as per the type of loan. Different sort of loan types needs buyers to: 

• Funding charges 
• Paying the mortgage insurance premium 
• Buying private mortgage insurance.

 

3.     Good credit score 

Most lenders prefer a FICO credit score of a minimum of 620 for a conventional loan. So, if your credit score is lower than 620, begin improving it today. 

 

 

4.     Employment verification 

Lenders prefer to lend money to people with stable incomes. So, make sure that you have a stable mode of income coming into your bank every month. 

 

5.     Other documentations 

This includes the signature of the borrower, social security number and driver’s license. It also depends on your lender. 

 

If you’re planning to purchase your first home and applying for a home loan, get in touch with a loan originator today to find the best options for you. Visit www.pmbhomegroup.com for more details.