Pre-Approval Process: What to Prepare
Applying for a mortgage or a home loan can be a tedious process at times. Preparing all the required documents before applying is an advantage that will ensure your mortgage application process is smooth.
Some of the important documents you are required to have are listed below.
W-2 Forms or Profit and Loss Statements
A W-2 highlights all wages that you accrue annually and how much you are taxed. If you are self-employed, you’ll be required to provide the most recent profit and loss statements for your business.
You’ll be required to hand over details about your tax returns. This will enable your lender to calculate your tax liabilities and deductions.
A complete list of all the debts you may have accrued over the years is required. The list of debts allows the lender to calculate how much you owe and the amount that is expected to be deducted monthly from your income.
List of Assets
You’ll be required to provide a detailed list of all your assets and your bank statements. This is important so as to assure the lender that you can cover all the mortgage costs.
Your credit report reveals how much you spend on a regular basis. It also reveals your payment habits.
Ensuring that you have all the required documents and that they are up to date will help increase the chances of you getting a mortgage.
For more on this subject read our recent blog, “Little Known Real Estate Costs That Can Push You Over Budget.”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.