MORTGAGE CHECKLIST

So you're ready to buy a home, are you? Well...maybe, maybe not! To be totally prepared, you should call a mortgage broker or bank before you even start looking, and get pre-approved. What's the difference between pre-qualified and pre-approved? One major item - your credit worthiness will be verified! And believe me, that goes a long way toward making the seller's agent and the seller feel more comfortable accepting your offer. When a buyer's agent submits a pre-approval letter along with an offer, it adds credibility to the offer.

What will you need for the mortgage loan originator when you actually apply for that mortgage after you've found that perfect property? The following items:

W-2 Forms - or business tax returns if you're self-employed. The last two years

Copies of at least one pay stub - for each person applying for the loan

Bank Statements - copies of two to four months of your most recent bank or credit union statements

Lender, Loand Number and Amount Owed on any loans you may have, including student loans

Account Number for Credit Cards and Charge Accounts and the outstanding balances on each

Addresses for the Last Five Years - and landlord contact information

Documentation to Verify Additional Income - such as child support, alimony, pension

Copies of Personal Tax Forms for the last two years

FIVE THINGS WHICH AFFECT YOUR CREDIT:

Your Payment History

How Much you Owe

The Length of Your Credit History

How Much New Credit You Have

The Types of Credit You Have - most mortgage companies prefer to see three types of credit, such as vehicle loans, mortgages and credit cards

THE DIFFERENCE BETWEEN PRE-QUALIFICATION AND PRE-APPROVAL

Pre-Qualification is the result of supplying information to a bank or mortgage company with no documentation involved and no credit check

Pre-Approval is the result of a more in-depth financial discussion with a bank or mortgage company, often involving documentation, and always involving a credit check; offers which are accompanied by a Pre-Approval from a bank or mortgage company carry the most weight and are generally considered more seriously than those without.

Remember, check with your bank or loan originator to see what their institution requires; it does vary some from lender to lender.

Thinking of buying or selling real estate? There's one ready source for answers to all your questions: Just Ask Allen!
aduhe@vaneatonromero.com
www.JustAskAllen.com
337-254-7812 - Allen's Cell