Why Get Pre-Qualified?
1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.
2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.
3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.
What will the lender require?
The following information is usually required during the loan process:
· Your Social Security Number
· Current pay stubs or, if self-employed, your tax returns for the past two years
· Bank statements for the past two months
· Investment account statements for the past two months
· Life insurance policy
· Retirement account statements for the past two months
· Make and model of vehicles you own and their resale value
· Credit card account information
· Auto loan account information
· Personal loan account information
If you currently own Real Estate: -Mortgage account information -Home insurance policy information -Home equity account information (if applicable)