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Lenders and the loan process
By GAY MARSH (ST. AUGUSTINE) -Today most real estate agents want their customers to be pre-qualified. The agent submits the pre-qualification with the offer to purchase so the seller knows the buyer is capable of actually buying the home. Anyone who wants a mortgage loan should be prepared to provide certain documents to the loan officer at the initial meeting.
At this point, assets and liabilities will be considered and usually within an hour a person can be qualified for an approximate loan amount. The down payment will be figured in and the home buyers will have an idea of what price range they are qualified for. The buyer should attach their Letter of Prequalification to any offer they make. This way, the seller knows they are dealing with someone who can, in fact, purchase the property. Of course, much time is saved by having the Letter of Prequalification. LOAN APPLICATION: This step is normally taken when the buyer finds a home, has made an offer, and both parties to the contract are in agreement and both have signed the contract. The purchaser then takes a copy of the contract to the lender and the application is filled out along with an application fee of about $400 which covers expenses to pay for the appraisal and credit report. All that is required to process the loan expediently is paid at the onset of the loan process. At this point the applicants should have with them the following items: Resident address and any account numbers such as mortgage company, address of that company or landlord; any addresses within the past five years, if different; gross monthly salary (include your most recent pay stubs showing year-to-date earnings); contact person and number for verification of employment including address and phone numbers; bank accounts, names and addresses, account numbers and balances (also bring last two months of bank statements); debts with names of creditors, addresses, account numbers, balances, and monthly payments for open loans including charge accounts, car loans, student loans, and co-signed loans; addresses and loan information on other real estate (show mortgage amount, account numbers, monthly payments, and approximate market value, and please include the 800 number of the mortgage holder); copy of photo ID and social security number; copy of Divorce Decree and Bankruptcy papers or death certificate where applicable; last two years of tax returns; a current Profit and Loss Statement (if self employed); and balance sheet (if self employed), interest dividends, pension accounts, retirement funds, and any other source of income. Copy and save the above information. It will be a big help to you when you want to be prequalified and want to make application at a lending institution. Gay Marsh, Realtor/Broker, is with Premier Property Realty Group in St. Augustine.
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PREQUALIFICATION: Prequalification is when the person has not made application for a loan but has provided personal information such as social security number; address during the last two years; present yearly gross income; time on the job; time in same line of work; and permission to pull the credit report.