Maison Magazine

September 2019

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has a conversation with a lender about finances, but the borrower doesn't need to provide any paperwork. A pre-qualification can be drafted on a piece of loose-leaf paper, or cocktail napkin - it often holds no value. To apply for pre-approval, you'll need to provide a lender with the following: • Pay stubs from the past 30 days showing your year-to-date and monthly income, or business profit and loss if you are self-employed • Two years of federal tax returns • Two years of W-2 forms from your employer • 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts such as CDs, IRAs, and other stocks or bonds • Any other current real estate holdings • Residential history for the past two years, including landlord contact information if you rented • Proof of funds for the down payment, such as a bank account statement (If the down payment cash is a gift from your parents, you'll need to provide a letter that clearly states that the money is a gift and not a loan, otherwise, the money for the down payment affects your debt-to-income ratio, and can prevent you from getting the mortgage loan.) • A mortgage application • Permission to check your credit report and pull your credit score (Your credit history shows your history of making mortgage and credit card payments, and borrowing other money and paying it back responsibly. Your report also shows open debt accounts you may have, including student loans, credit cards, and other debts. Even if you have a good credit score, if you have too many debts, your debt-to-income ratio may be too high to qualify for the monthly payments on your new loan.) A PRE-QUA FICATION CAN BE DRAFTED ON A PIECE OF OSE- AF PAPER OR A CKTAIL NAPKIN —IT OFTEN HOLDS VA E.

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