Let’s talk about mortgage applications! A mortgage application is a document that you submit to your Loan Officer when applying for a mortgage. The application helps lenders determine your loan eligibility. To start the process, you’ll need to provide the following:
- Employment Information: Your gross monthly income (what you’re paid before taxes) and your employment history.
- Documents: Your mortgage application will require the following documents. We’ll need these documents to verify your assets, income, and down payment funds.
- 2 Years of Tax Returns
- 2 Years of W-2’s
- Last 2 Paystubs
- 2 Months of Bank Statements
- Photo ID
- *Note: In some instances, we may ask for more documents (i.e. alimony documents, business tax returns, etc.)
- Credit Authorization: To issue a pre- approval, your loan officer needs to pull your credit report with verbal or written consent.
Once you have provided the following items, our expert team will perform the following!
- Verify Assets & Income: Our team will verify your assets and income with the documents you uploaded. If we need further documentation, our team will contact you.
- Determine Best Mortgage Solutions: Based on your homeownership and financial goals, out team will determine the best mortgage solutions for your personal circumstances.
- Pull Your Credit: Once you’ve provided e-consent and we’ve reviewed your employment information, income and personal information, our team will run your credit.
- Issue Pre-Approval Letter: You’ll receive a pre-approval letter outlining your mortgage solutions, and the loan amount your pre-approved for. Now, you can confidently house shop!
What NOT to Do After Getting Pre-Approved
When applying for a home loan, there a few key things to remember that can help your chances of getting pre- approved!
- Don’t move assets from one bank account to another. These transfers complicate the application process. Your lender can verify each account as it currently exists.You can consolidate your accounts later.
- Don’t change jobs. A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes.
- Don’t make any major purchases. If the new purchase increases the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing cost requirements.
These are just a handful of things that are done behind the scenes to help you secure your dream home. Download the DML app today to start your pre-approval application!