How to Cut Through the Red Tape of Mortgage Prequalification

It is no secret that the home loan process has changed over the last

few years and obtaining your mortgage pre-qualification letter may take a little more work on your part than in years past.  Most home buyers need to obtain a home loan and mortgage when purchasing their home and I wanted you to have a little more information on how the process works and how you can be better prepared for your pre-approval.  Laurie Johnson at Express Mortgage Lenders who handles many home loans for people in Pasco and Hernando counties is one of my preferred lenders and I have asked her a few questions in preparing for this article.

You will need a pre-approval from a lender before you can even start looking at homes to purchase. So the first step is to call a reputable mortgage lender.  What that mortgage lender will ask you for is this:
     2 years of tax returns (a definite for 1099 workers)
     2 months of bank statements (checking, savings, money market)
     2 current pay stubs 
     2 years of W2's 
 Gift funds to close will need to be "sourced" that means that if someone gives you money to help with your closing costs the bank will not only need to see your statements before and after the deposit but they will need to see the other persons bank statements before and after the funds were given. **if you are using money from someone else to close ask them for their 2 bank statements as soon as possible**

You may need to also provide a "letter of explanation".  This letter may be needed to explain items on your credit report, why you are moving, why you are moving from another state, explanation of unemployment periods, what caused a negative item on your credit report etc... this letter should be hand written and signed. If you prefer to type the letter, be sure to print it and sign it in blue ink and scan a color copy over to your loan officer.  

Home loan mortgages are Not "harder" to get than in years past.  

The mortgage pre-approval process has only gotten more thorough.  You may feel that the process is a big nuisance but it is to ensure that borrowers have more financial security and ability to pay back their home loan debt.  If you have any questions regarding the home loan and mortgage approval process you can contact Laurie Johnson at Express Mortgage Lenders and she and her staff will assist you any way they can.  

written by Michael J. Gallo