Read what a professional lender and great guy has to say about the process of getting a home loan in today's lending environment.
"It may seem in today’s world that applying for a mortgage
loan requires giving up your first born; however, there are some steps that a
prospective homebuyer can take that can help in the application process.
Credit scores and credit history is relied upon very heavily
by lenders when analyzing a credit application.
The higher the credit score is, the benefits for the borrower are
greatly increased including better interest rates and lesser restrictive
qualifying guidelines. One teps that a borrower can take prior to applying for a loan is to avoid applying for additional credit such as credit cards. Each time additional credit is applied for, even if the credit is not accepted or wanted by the borrower, an inquiry will be reflected on the credit report. A lender looks at these inquiries as potential additional debt and could require additional explanations by borrower. In addition, do not apply for a mortgage loan with several lenders.
Do your homework first, getting cost estimates from different lenders to compare rates and cost. Choosing a lender based on the lowest rates is not always the best choice. Rely on your realtor to give feedback on viable lender options. Remember, choosing a lender that is reliable, ethical and knowledgeable goes a long way in making the application process smoother and less stressful.
The amount of debt that a borrower has is an important
factor in qualifying. Exceeding certain
debt to income guidelines could prevent a borrower from being able to qualify
for the home of their dreams. Avoid
taking on additional debt if possible.
Be ready to provide the lender, prior to application, the
following items. This will help expedite
the preapproval process and not to mention, make life a little easier by having
this information organized and ready to provide.
- Paystubs for the most recent 30 day period
- w-2’s for the most recent two year period
- tax returns, personal and corporate (if applicable) for the most recent 2 year period
- bank statements, investment account statements for the most recent 60 day period
- retirement statements for the most recent period
- Copy of drivers license
Billy Leavitt
Mortgage Loan ConsultantNMLS# 231178
First United Bank
972.523.9815
bleavitt@firstunitedbank.com
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