Purchase Pre-Approval & Refinance Mortgage Process
1) First Meeting
During the first meeting or telephone call, we will give you an overview of general mortgage process.
2) Mortgage Qualification
Mortgage qualification depends on your Credit Score, Credit History, Income, Assets and Employment. Lenders price interest rates are based on the risk profile of the borrower. The best credit allows you to qualify for a lower down payment and mortgage rate. Borrowers with recent credit issues may require larger down payment and a probable higher interest rate to compensate for the risk for default.
Compensating factors such as job stability and high asset balances after closing may offset risk.
2) Gather Information
You should collect documents in a mortgage folder containing your personal financial information for underwriting evaluation of your assets. OR go DOC LESS, where you authorize us to electronically verify your income, assets and tax returns.
- 30 days of most recent paystubs
- last 2 years of W2
- last 2 years Federal Income Tax returns (1040) signed
- if new employee (offer letter)
Assets and Reserves for down payment
- 2 months of bank statements (all pages)
- most recent quarterly retirement, mutual fund, stock accounts
- Photo identification (driver license or passport)
- Foreign National work visa (if appliable)
- Social Security Card
4) Loan types
The standard loan options are fixed or adjustable rate mortgage programs. The loan term is usually 360 payments (30 years).
5) Housing Payment Calculation
Approvals are based on factors such as your gross monthly income, credit history, down payment, monthly minimum credit payments and reserves after closing.
Your monthly principal and interest payment is calculated based on the loan amount, loan term and interest rate. See mortgage calculators.
Your Monthly Housing Payment = The monthly total of principal, interest, real estate taxes and home owner insurance (PITI). If you are buying a condominum, the association fees would be included.
Underwriting guidelines measure ability to repay your loan based on your housing payment combined with your other monthly debts as a percent of your gross monthly income.
a) Ideally, your housing payment should not exceed 36% of your gross monthly income.
Your Total Debt Payment = Total housing payment plus total monthly minimum credit card debt and installment loans should not exceed 43-45% of gross monthly income. Exceptions can be made based on compensating factors such as superior credit, job stability and asset reserves after closing
6) Pre-Approval Letter
Often having a Lender pre-approval letter can make your offer appear more desirable to a seller to ensure an on-time closing.
7) Get a Rate Quote
Receive a customized rate quote. We will contact you shortly. We can also provide a mortgage pre-approval or mortgage pre-qualification. Thank you for the opportunity to earn your business. Online application.