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Getting Pre-Qualified

Most Real Estate agents and Lenders recommend that home buyers get pre-qualified with a lender before selecting a home to purchase. This way you will have the best information about the price you have chosen.

Reasons to get pre-qualified...

With pre-qualification, you can determine which loan program best fits your need and which programs you qualify for.

You will know exactly how much you are qualified for. It's no fun to find your ideal home and then realize that you can't afford it.

Your monthly payment will be set. This will allow you to budget your money before making this large investment.

It shows you what the down payment and closing costs will be.

If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which may allow you to afford more home for your money. 

Credit Information Requested by Banks

Credit Authorization – Signed by all borrowers

Patriot Act – documentation proving your identity and copy of Drivers License

Income
            From Employment – W2 (2 yrs) & recent paystubs.
            Name/Address of Employer
            From Retirement
            From Self-Employment
            If ownership is 25% or more – copies of most recent two years Corporate or             Parntership returns with K-1s
            If ownership is less than 25% --  copies of most recent 2 years K-1s.
               (Profit/Loss statement and Balance Sheet may be requested.)
            From Rentals – copy of current lease agreement or copy of most recent two years                complete Federal Tax Returns OR Fair Market Rent Statement.

Assets – copies of the two most recent month’s bank statements for checking, savings, and investments or most recent quarterly statement for investments, including 401(k) and deferred compensation.

Liabilities – list all debts; mortgage, auto, consumer, and revolving accounts currently in use.  If currently renting, provide name and mailing address of landlord.  Explanation letter for any payments, judgments, liens, bankruptcy or foreclosure. 

Child Support/Alimony/Separate Maintenance – front page of the final Filed divorce decree and all pages outlining support, alimony, or maintenance payment (or liability) and pages outlining the separation of property and liabilities.
            Income from any of the above – provide a three month history (cancelled check OR history from support enforcement OR bank statements showing automatic deposit)

A copy of your credit report will be requested – you may have to sign a release in order for the lending institution to make a request. 

Be prepared to obtain insurance – might be a good idea to line up an insurance company prior to purchasing.

Copyright 2007 Nanc Smith, Windermere /Sequim Central, 279 W. Washington, Sequim, WA -
360.683.1741. Email me.

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