The Mortgage Approval Process

Are you in the process of buying a home or just thinking about purchasing? Have you talked with a lender or are you just browsing online? One of the first steps many home buyers choose to take is to get pre-qualified or pre-approved. This helps to set a standard and limit the search when finding homes to visit. We want to help guide you through the mortgage approval process and help you learn along the way. The helpful team at North Star Network can get you the information you need to get started on your search as soon as possible.

The Basics 

When it comes to the mortgage approval process, finding a home you want to buy is important The first thing you want to do is prepare and review your finances. Your credit score is very important when discussing financing with a lender so you want to do whatever you can to make sure your credit score and your credit report at their very best. You will also want to ensure all your payments have been made on time as missed payments can contribute to damaging your credit score, and does not create confidence in a lender.

Documents Needed

Your credit history is not the only thing that is important when you are applying for a home loan. You will need to gather several documents in order to start the process to secure a loan. Although the specific forms needed may change depending on the lender, there are some overall documents that will be needed in any case.

You will need a copy of your tax returns in most cases as well as pay stubs or W-2’s to provide proof of income. This will help to provide a lender a bigger picture of your financial situation and assure the lender that you are a good candidate for a home loan.

It’s also helpful to provide bank statements and any other documents that show any assets that will help you to secure a home.

Your credit reports and history are good for you to have for review as well as to provide to your lender.

Some form of ID like a license or passport will be needed to verify your identity.

Providing your rental history will give a background on you as a tenant and will provide proof of stability especially if you’ve lived in the same place for an extended amount of time.

In some cases, you might be getting funds from a family member for a down payment, and getting a gift letter will be helpful if you don’t have the funds available in your own account.

Next Steps

After you have decided on the type of loan that is right for you, and you get approved, the next step is figuring out the finer details like the terms and interest rate. This step is where you’re getting closer to signing the final paperwork and actually purchasing the home so you’ll want to ask any questions you have of your lender before locking in the terms. These terms are also usually given on a time limit so you’ll want to get an offer in on the home as soon as possible to ensure time does not run out on your approval letter.

Call Us Today!

Getting started on the mortgage loan process can seem overwhelming but we are here to help and answer your questions.  We would be more than happy to discuss your options, so feel free to give us a call at North Star Mortgage Network in Jacksonville, FL today!