Getting Prequalified For A Home Loan
Before you start your hunt for Moorpark Homes Coming Soon you will want to get prequalified with a mortgage lender. The biggest reason this is the place to start is because you want to make sure you only look at homes within your budget. The only way to be sure of your exact budget is to get prequalified. You never need to purchase all the up to your max qualification, this is just a guideline so that you know where you stand. Below is a list of things you will need in order to get prequalified for a home loan.
1. Proof of Income: Be prepared to show two years of W-2’s if you are employed. If you are self-employed be prepared to show several years of profit and loss statements, K1’s, 1099’s and anything else you may have that shows where your income originates from.
2. Proof of Assets: If you have additional assets such as another home, 401k, etc. you will need to provide proper documentation. You will also need to show proof of your down payment whether it is in a savings account or a retirement account. If your down payment is coming in the form of a gift you will need to provide a gift letter and proof of assets from the person gifting you the money.
3. Good Credit: While perfect credit is not necessary for a purchase of a home, decent credit is. If your credit is subpar you are going to pay more in interest rates as you will be viewed as a liability. There are a variety of programs available to help those qualify with less than perfect credit, but you will want to do everything you can to improve your credit score before applying for a home loan. For example, those with 620-639 credit score will pay 4.656% in interest whereas those with 760-850 credit will only pay 3.05% in interest in today’s current market. This can mean the difference of thousands on your monthly payment depending on the purchase price of the home.
4. Employment Verification: COVID has increased the need for employment verification. Be prepared for your lender to check 2-3 times that you are still gainfully employed.
5. All The Documents: You will need multiple documents, be patient with yourself and your lender. Documents can include bank statements, credit card statements, questions about your business or credit history, and so much more.
If you have been on the lookout for Moorpark Homes Coming Soon, we can help, but first let us help you get prequalified.