Shawn Rogers

Shawn Rogers

REALTOR
ak.119126

THE IMPORTANCE OF PRE-APPROVAL

When you are pre-approved for a mortgage, sellers know that you are serious.
Mortgage pre-approval can be done in as little as a day. It requires completing a formal application to the lender and submission of all necessary financial and employment documentation.
A good rule of thumb is that your total payment for mortgage, taxes, insurance and assessments should not exceed 28-33% of your gross monthly income.

  

Things you will need to bring to the mortgage loan originator:

  • Thirty days of pay stubs
  • Two years of federal tax returns
  • Sixty days or a quarterly statement of all asset accounts, including your checking, savings and/or investment accounts
  • Two years of W2's

 

Follow this pre-approval checklist and you'll be in a great position to secure the mortgage you need to buy the house you want...

Pre-Approval Checklist:

  1. Gather your financial data (listed above) including; proof of IRA and/or retirement account balances, social security, child support and/or government assistance.
  2. If self-employed, include your business' profit & loss report for past two years
  3. Have your earnest money, down payment and closing funds available in the bank.
  4. If down payment and closing funds are going to be gifts to you, let your mortgage lender know at the begining of the process.
  5. If you've been renting, put together the last twelve months of proof (i.e. check copies & money order receipts) showing that you've been on time each month with your rent payments.
  6. Disclose money held in stock market and other properties already owned.
  7. Be prepared to disclose past financial issues, like bankruptcy.
  8. Review your credit score, you can get a free report at annualcreditreport.com.
  9. Use large pots of flowers or green plants on the porch
  10. Keep your credit score healthy--do NOT do the following: apply for new credit, take on new debts or make large purchases, cancel any current credit accounts or ask a creditor to lower your limit.

 



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