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� Apr. 19, 2008 - 10 Critical Mortgage Questions (#8)

8. What documents will I have to provide?
You can generally get "pre-qualified" with no documentation at all. A quick phone call to a good Mortgage Loan Officer and/or short loan application is generally all that is needed to find out how much mortgage you qualify for and what your rate might be. However, most lenders will require proof of income and assets before approving your loan (or truly "pre-approving" it), and often they may require other documents as well. I've seen them ask for everything from tax returns, to paycheck stubs and/or bank statements, to a note from your parents. Seriously, if you were gifted part of your down payment from Mom and Dad, the lender may want it in writing that it was a gift and not a loan. Turning these documents in to your lender early in the process may allow you to get pre-approved and breeze through the purchase process more quickly (and, thus, make your offers stronger as well). Note that many less-knowledgeable Mortgage Loan Officers (and Real Estate Agents) use "pre-approved" interchangeably with "pre-qualified". They are not the same thing... I have seen many people who were "pre-qualified" for a loan based on what they told the lender over the phone (or wrote on their loan application) but then failed to produce the documentation to support their claims of income and assets (so they are unable to get approved). Theoretically, if you are truly pre-approved you should fly through underwriting (final loan approval) since they have already seen and approved your supporting documentation. Don't want to dig around for all of the supporting documentation (or have a job where it's tough to document your income)? Buyers with excellent credit may qualify for a no-documentation or "no-doc" loan, but they can typically expect to pay a higher down payment and/or higher interest rate (and these loans have gotten even harder to get since the "mortgage meltdown" of late 2007). Do yourself a favor and find a great Mortgage Loan Officer, provide the requested documents, and get 100% pre-approved before you even start shopping... this can save a lot of heartaches, and headaches, when buying a home (and even put you in a better negotiating position). Of course, great Real Estate Agents usually know a few great Mortgage Loan Officers (you can bet I do) so ask for an introduction.
 
Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com
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� Apr. 21, 2008 - RE: 10 Critical Mortgage Questions (#8)

Posted by John
I must appreciate your work. from last couple of days i was searching for something interesting and this post is really nice.

Thanks for this nice post.
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� Apr. 27, 2008 - RE: 10 Critical Mortgage Questions (#8)

Posted by Emily Hudkins

Thanks for the great information.  You try to pass all the information you can along to your clients, but this really puts it all in perspective.  Thank you for your hard work. 

I am new to the Blog community and this was the first one that peaked my interest because I work with buyers most of the time.  I plan on using this to help me remember to tell them what they need when getting preapproved.  My most current buyer has gotten their preapproval, so we are on the right road.

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