What Do I Need To Do To Get Pre-Approved For A Mortgage?

 What Do I Need To Do To Get Pre-Approved  For A Mortgage?

 

This is the first in a series of guest blogs by George Souto of 10 most frequently asked Mortgage questions that as a Mortgage broker I am asked on a weekly basis.  This is the one that I am asked most often.

 

What Do I Need To Do To Get Pre-Approved  For A Mortgage?

The majority of the loans I do are for First Time Home buyers, so they do not have a clue as to what is involved in being Pre-Approved for a mortgage.  The answer to this question is simple, and one that I try to make as painless as possible.  At least 80% of what I absolutely need to know, I can find out in about 10 minutes.

 

1. I need to pull their Credit Report, so I need:
   1. Their legal name
   2. Their Social Security Number
   3. Their home address
2. I need to determine their Debt-To-Income Ratios, so I need to know how they are paid:
   1. If Salary, what is the yearly salary without bonuses
   2. If by the hour, what is the hourly rate and how many hours per week, without over time
   3. If Self-Employed, what is the Net Gross Income on the schedule “C” on their tax returns the last two years.
   4. I Commission, have they been receiving it for at least two years, and if they take business deductions, what is the Net Gross Income on schedule “C” of their tax returns

(There are other income questions, but these are the four most common)

 

With this initial information I can pull credit, determine the Debt-To-Income Ratios, and begin to establish what price house they could possibly qualify for.

 

Also based on the initial above information, I will either go on to complete a full application, or stop right there until we correct anything that needs correcting, especially credit scores.   But let’s say everything is good, I then go on to collect the following information:

 

1. Contact information
2. Date of birth
3. Where they have lived for the past two years
4. Where they have worked for the past two years
5. Additional income if any
6. Bank information
7. Series of “Yes” and “No” questions.

With this information, I can then run the file though Automated Underwriting (DU), and have very good idea if they qualify or not.

 

Of course at this point, I am basing my opinion on what they have told me, and still have to verify the information, by collecting:

1. Paystubs
2. Tax Returns (if needed)
3. Bank Statements

For most Borrowers, the above is all I need, but there are times that other information might be needed to determine what they can be Pre-Approved for.  What Do I Need To Do To Get Pre-Approved  For A Mortgage?

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Information about My Guest blogger and author of this mortgage blog post, George Souto:

George Souto  will be a guest blogger on my web site regarding mortgages.
George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut.    George can be contacted at (860) 573-1308 or at gsouto@mccuemortgage.com

 

Ginny Gorman, of www.RIHouseHunt.com is the sparkly red shoe real estate agent in Rhode Island.  Call her at 401.529.7849 when you have interest in selling and effective marketing of your RI property.