Loan pre-approval differs from the loan pre-qualification as it involves through and careful review and analysis of borrowers income, assets, debts and credit worthiness (Scroll down to see required loan documents). When you, finance with me, I can show you my tools and pre-approve you by sharing my calculations with my mirrored monitor system, where you get to see your dynamic pre-approval process. In a typical pre-approval process, we calculate your debt-to-income ratio (DTI), and with our knowledge of over 100 mortgage lender’s qualifying criteria, we approve you for the loan. As a mortgage broker, we differ from the banks in a way that, we run your credit score once and use that information to pre-approve you at various lenders. For you this means less shopping around and not having your credit run by multiple banks, which may reduce your credit score due to multiple credit inquiries.
If you want to know your pre-qualification, you can use my loan calculator for loan pre-qualification to get rough idea. If you want more tighter range, I can do it over the phone when you call me. There is difference between loan pre-approval and loan pre-qualification. To get pre-approved for the loan, you can submit following documentation for through analysis. Your pre-approval will be different for different programs and with different lenders. You will know your boundaries and maximum pre-approval with constraints imposed by your income and assets. I call this flexible underwriting. or flexible-preapproval! If banks tell you you are pre-approved for a specific amount, i can guarantee you that your pre-approval can be higher and you can get into that home of your dreams today. With home prices rising in future, as history shows, you can improve your cash flow as you continue to save during your home ownership.
When you work with us, we are your life time real estate and mortgage consultants. We have a FREE Rate Monitoring system, where you get alerted every time the rates are favorable for you to improve your cash flow, meaning your monthly payments will be lower than before. Remember every time you refinance with 30 year mortgage term, you add 30 more years to the loan increasing your cost of home ownership. When you, finance with me, I will show you the tricks to lower your cost of home ownership and not to start your loan repayment term all over again.
List of Required Loan Documents
Here is the list of required loan documents that will allow me to provide you with a Power Loan Pre-Approval so you can write offers with confidence. It also allows me to evaluate your finances for refinancing your existing loan. Most of the documents you have can be found electronically on provided electronically. You can also download the Adobe Acrobat App on your smart phone or tablet and sign with your fingers on documents that require signatures) Call or email me so I can set up secure Drop-Box cloud access for you.
A. Recent two years of W-2’s. (allows lender to understand consistency of your income)
B. Recent 30 days of pay-stubs (allows lender to know that your income is still continuing)
C. Recent two months of bank, stock, and any other asset statements, such as foreign currency account (allows lender to evaluate your seasoned assets that can be used for down payment and/or required reserves)
D. Recent (typically quarterly) 401-K and IRA statements plus any other retirement plan you may have (you can get a loan against typically the 401-K accounts for down payments)
E. Recent two years of tax returns (tax returns provide additional information to lenders whether you own any rental real estate, whether you have any ownership interest in the businesses, whether you have any consistent income from investments, or just to verify your W-2 incomes)
F. Credit Authorization (allows us to run your credit report so we can understand your credit history, and your debts). Download the Credit Authorization, print, scan and send back with all other documents)
Following additional documents are required when you are refinancing or own any other real estate. Please provide following documents for each property you own,including the property you are refinancing.
G. Recent Mortgage Statement
H. Recent Property Tax Statement
I. Insurance Declaration Page (Hazard Insurance or the HO6 policy)
J. Recent HOA (home owner’s association) statement, if the property is located in a community.
It typically takes about 24 hours or less for us to review all provided documents, summarize your assets, income and debts and provide you with Power Loan Pre-approval. Own Sweet Home and we look forward to helping you.
All loans are originated through Pacific Mortgage Consultants, Inc., Your Mortgage Broker.
CA Bureau of Real Estate Broker License # 01378482, 01355522
NMLS # 2131, 236574