How to Qualify for a Mortgage
As your local experts on Moorpark homes for sale we know the process inside and out. The first step we see many families wanting to skip is getting prequalified for a home loan. It can feel much more exciting to skip right to looking at homes. However, you don’t want to get overly excited and start looking in the wrong price range. Qualifying for a mortgage can feel overwhelming if you have never been through the process before, but it doesn’t need to be. See below for some of the main things that you will need to start the process.
1. Proof of income: If you are an employee of a company you will want to make sure that you save all of your W2’s for the past two years. Your loan application will require this documentation. If you are self-employed, you will need all of your business and personal tax documentation as well as any K1 income that you may have.
2. Proof of assets: Be ready to show where your down payment is coming from in a bank statement or a gift letter. Your loan officer will need to be able to prove that you have the funds readily available. If you are using your own money, it is important that the funds have been in your account for 90 days or longer.
3. Good credit: The better your credit is the better chances you have of qualifying as well as getting a better interest rate. If your credit is a concern please bring it to your loan officer’s attention, there are things that can be done to improve your credit to increase your chances.
4. Employment verification: Employment verification has always been necessary to help show that you will be able to make your mortgage payments, but this step has become increasingly important post-pandemic. With so many businesses closing and employees being laid off it will be important that your employer is able to verify your employment.
5. Personal documentation: Finally, you will need to provide some personal documentation including your social security number, your signature, as well as your driver’s license. Depending on your situation you may need additional pieces of documentation, it just depends on your specific loan scenario.
If you are looking for Moorpark homes for sale, we are here to help but remember to always start with prequalifying for your home loan. If you need help getting started, please do not hesitate to reach out to us with questions!