How Can I Get Prequalified For A Mortgage

By Author: Mr projects
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Getting prequalified for a mortgage sounds like a major step in the home-buying process, but really it starts with filling out paperwork and talking to a Licensed Loan Originator. Pre-qualifying for a mortgage will give you an idea of how much you can borrow to buy a home. It is an excellent idea to start by prequalifying with a mortgage specialist before going house shopping.

Get Your Supporting Documents Together

Although you can get prequalified for a mortgage over the phone or online, it is a good idea to gather all your supporting documents before you even start—you're likely to be asked for additional documents during the process, but having these items together is a great starting place. You'll need:

Photo ID and Social Security card.

To provide a detailed work history for 24 months preceding mortgage application including start and end dates, as well as any gaps in employment.

One month consecutive pay stubs (most recent).

Two years W-2’s and/or 1099’s (most recent).

Most recent two years federal tax returns with all schedules if self-employed or more than 25% ...
... income from bonus or overtime (a year to date profit & loss statement may be required if self-employed).

Most recent two years federal tax returns with all schedules if you own rental property(s) and lease/rental agreements .

Divorce/separation/child support papers and proof of receipt of child support for 12 months, if disclosing as monthly income and continuance for 3 years.

Two months most recent bank statements or most recent quarterly statement including checking, savings, investment, brokerage and retirement accounts (provide all pages, even if some pages seem irrelevant).

Bankruptcy papers including petition, list of debtors and discharge of debtors less than 7 years old.

A copy of the executed purchase contract including all addenda.

Copies of deed, school and property tax bills.

A copy of sales contract and listing agreement for sale of current residence or copy of HUD-1 if sale of property has already closed.

These are the basic documents you will need to prequalify for a home mortgage. If you are self-employed or have recently changed jobs, additional paperwork may be required.

Prequalified Home Mortgages and Your Credit Report

Keep in mind that most lenders will not accept a credit report pulled by you or another agency; they'll want to pull a report themselves. The rules for how multiple credit report requests in a short amount of time affect your credit score are hazy, so it's best to make as few requests as possible.

As part of the pre-qualification process, the lender will use your Social Security number(s) to get credit reports from the three major reporting agencies. If you're talking face-to-face with a lender, ask to see the report and have your Loan Originator go over the specifics of it.

Be prepared to explain any late payments, bankruptcies, or other negative marks on your credit. Take the time to contact creditors if information is wrong and ask them to correct it. This can be quite a process in itself, but it's worth the effort if you're just a few points off from prequalifying for a better interest rate.

Is Prequalifying the Same as Pre-Approval for a Mortgage?

Though the terms “pre-qualified” and “pre-approved” are sometimes used interchangeably, they aren't the same. Getting preapproved for a mortgage means you've taken the application process one step further and gotten a commitment from one or more mortgage lenders to give you a mortgage when you find the right home.

Need more information about mortgage prequalification? Speak with a Licensed Loan Originator at Homestead Funding today. The mortgage specialists at Homestead Funding can assist borrowers looking for residential financing; FHA loans, VA loans, Conventional and Jumbo mortgages. Whether you are a first time home buyer or refinancing your current home, Homestead Funding can assist you. For a complete list of Homestead Funding’s products visit the Mortgage Products page here. Homestead Funding’s specialists are located throughout New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. To speak with a mortgage specialist near you, visit www.homesteadfunding.com/locations/search.cfm.

Homestead Funding Corp. is a multi-state licensed mortgage banker with branches located in New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. In operation since 1995, our corporate headquarters is located in Albany, New York where we have perennially been the area's largest independent mortgage lender. We have tens of thousands of satisfied customers, originated billions of dollars in residential mortgage loans and maintained a reputation of exceptional service, honesty, integrity and financial reliability. For more information, please visit online at www.homesteadfunding.com.

Homestead funding offers expert advise in prequalifying for mortgage. We have branches in Massachusetts, Connecticut and Virginia.