March 22, 2013

How to Obtain a Mortgage Pre-approval

Obtaining a pre-approval is the first major step in purchasing a home. For first time homebuyers, the pre-approval process may seem convoluted, but it is actually very simple. United Home Loans offer free pre-approvals for both first time and current homeowners. Here a few pieces needed to issue a pre-approval:

Credit Score – credit score plays a key role in determining the rate and program type you qualify for. Mortgage companies pull a tri-merged report, meaning they pull a score from each bureau. Your qualifying score, also known as your qualifying FICO, is the middle of the three scores. If there are two borrowers, the lower of the two middle scores is used in qualifying.

Income Verification – income verification is required to determine your ratios, and the monthly payment you will qualify for. To verify income, you will need to submit paystubs covering a 30 day period, 2 most recent years of W2s and possibly the 2 most recent years of tax returns.

Asset Verification – assets will need to be verified to determine sufficient funds to close and down payment funds. Liquid assets – such as checking, savings, or money market account need to be provided, or non-liquid assets such as retirement or investment accounts need to be provided and liquidated prior to closing.

Please contact us below or call 708-531-8388 with any questions or to begin your pre-approval.


Contact Us