Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a purchase contract on a home before applying for a mortgage. By then, not only will you know the specific property you want, but also how much you need to borrow. At that point, the lender will require that you fill out a loan application and reveal specific information about your current and past financial situations.

The following checklist is a good place to start for gathering the information you will need:

Original purchase contract (the loan officer will make a copy and return the original to you)

Copy of earnest money (deposit) cancelled check

Employment history details

Last two years' W-2 forms

Last two years' income tax returns

Paycheck stubs for past 30 days

Verification of secondary income (for example, investment accounts, bonuses, a part-time job, child support or social security income)

Assets: Account numbers, balances and branch addresses

Checking

Savings

Stocks/bonds (current market values)

Debts: Account numbers and addresses

Auto loan(s)

Boat loan(s)

Student loan(s)

Credit card

Other

Explanation of any credit problems (for example, previously declared bankruptcy, excessive credit card debt)

Divorce or separation documents (if you receive or pay alimony or child support)

Landlord's name and phone number (if renting)

Disposition of present home (if you already have a home, do you plan to sell it or rent it out?)

Person who will give lender access to lender's appraiser (name and phone number)

Your check for appraisal, credit report and/or loan application fees (your lender will provide the cost information)

Pre-qualifying vs. Pre-approval If at all possible, it is best to begin the loan approval process before you find the home of your dreams. Otherwise, you may hit a roadblock when you apply for a mortgage and the application is denied. If the seller has other buyers waiting, or needs to sell quickly, you may lose your chance for that particular property.

There are two ways to help avoid this scenario:

1.) Become pre-qualified for a loan: All you need to do is speak to a lender, who-based on asking you some questions about your finances-offers an opinion of the loan amount you are eligible to borrow. The lender doesn't ask for any supporting paperwork to confirm what you say, and can change his or her mind when you come back to apply for a loan. There's no charge for pre-qualification.

2.) Become pre-approved for a loan: This process is more complex and sometimes involves a fee. The lender will want information about your employment, income and debts to prove that you are a good risk.

Obviously, a lender's pre-approval letter carries more weight with a seller than a pre-qualification letter because it is proof of your buying power on paper. Being pre-approved gives you an advantage when you're among several buyers pursuing a property.

Pay off other loans.

If at all possible, consider paying off any high-interest loans before applying for a mortgage. The more debts-like car loans or credit card balances-that appear on your mortgage application, the smaller the loan amount the lender will be willing to offer.

Don't pull a Pinocchio!

Never inflate your income or lie about employment dates. Not only is it illegal to falsify documents, it's also a federal offense! And lenders can usually catch people who lie or greatly exaggerate information on their applications. If you lie, you will most likely get what you were trying to avoid all along, a denial for your loan.

Genesis Font is an SEO and Developer for LoansInteractive.com - Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.

---

Personal Loans and Lines of Credit

Personal LoansNormally, a personal loan is unsecured meaning there is... Read More

Buy Now And Really Pay Later!

With UK personal debt breaking through the £1 Trillion mark... Read More

Cash Advance Payday Loans: A First Time Users Guide

If you considering using a Cash Advance Payday Loan service... Read More

Be Wary of Guaranteeing a Loan

You need to be wary of guaranteeing a loan. What... Read More

Information About Adverse Credit Homeowner Loans

While looking for adverse credit homeowner loans it can seem... Read More

Relax, Unwind, and Enjoy With American One Secured Personal Loans

Secured Personal Loans are those loans against which you don't... Read More

About Personal Loans

What are personal loans? They are unsecured loans that a... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

Payday Loans Available Even ToThose With Bad Credit

Bad credit payday loans may seem like an oxymoron phrase,... Read More

What is a Secured Personal Loan?

A secured personal loan is the generic term for a... Read More

A College Loan Will Finance Your Education!

A college loan has given people all over the United... Read More

Getting a Debt Consolidation Loan

Should you find yourself getting in over your head with... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More

Bridging Loans - Fulfilling Financial Shortfall between Real Estate Transactions

You are trying to buy a new property and selling... Read More

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

Signature Loans: A Signature Can Relieve Stress Of No Collateral And Bad Credit

The dynamics of loans borrowing procedure has brought new ways... Read More

Quick Cash Advance Payday Loan - Get it Free or Cheap

If you are looking at getting a payday loan or... Read More

A $500 Payday Loan Can Help In an Emergency

A $500 payday loan can be a real life saver... Read More

Poor Credit Car Loan - Get Approved Online

Poor credit doesn't have to stop you from getting a... Read More

So Many Loans, So Little Time

If you find yourself in need of poor credit loans,... Read More

A Brief Look at Homeowner Loans

Homeowner loans are useful ways to get the things that... Read More

What Is A Payment Protection Plan?

A Payment Protection Plan is an insurance cover you would... Read More

A Guide to Finding an Adverse Credit Homeowner Loan

If you're searching for an adverse credit homeowner loan, you... Read More

Try Unsecured Loans! If The Word Secured Doesn?t Fit Your Financial Statement

Big financial goals, no security to supply - it is... Read More

A Guide to Getting a Debt Consolidation Loan UK

If you're getting in over your head with credit, you... Read More

No Income Verification Loans ? When Income Doesnt Show on Paychecks

Financial statements, salaries, income proof, documents, paycheck, W-2 forms, 1099's... Read More

Online Loans Made Easy

What will it take for you to get a low... Read More

A Borrowers Guide to Bad Credit Loans UK

If you find yourself in a situation where you need... Read More

Taking the Time to Find the Best UK Loans

When looking for UK loans, it's always important to take... Read More

Fast Cash Now Easier Than Ever, but at a Price?

Because of the Internet, quick payday loans are faster than... Read More

How to Find a Loan or Mortgage with Bad Credit

If you have bad credit and you are trying to... Read More

8 Point Checklist: Evaluating Online Vendors

Here are 8 things to consider, when evaluating lenders online:Website... Read More

If You Consider To Get a Quick Cash Loan Then Reconsider It

A quick cash loan also called payday loan, cash advance... Read More