How to Qualify for a Mortgage

If you are exploring our site, you may have been considering a real estate purchase for a while. If so, you may have been worried about qualifying for your mortgage loan too. In the first steps of your journey toward finding your dream home, and getting a home loan financed, we give you some tips on how to be you can be prepared:

Getting Ready to Qualify

Qualification OverviewJOB STABILITY: Your time on the job makes up a portion of your approval. Most lenders would like to see at least two years. The more, the better. So, do you have two years of employment, and do you have documents, such as check stubs, w-2’s or a letterhead, to show proof that you’ve been on the job for a while? If you are self-employed, you will need your Business License and 1040’s, including all schedules, for the most recent two years.

If you are retired, you will need a copy of your award/benefit letter documenting the current amount and the continuance term of your benefits.

DOWN PAYMENT: Have you been putting a little of your earnings away toward a future down payment for your new home? If not, now is the time to start! Most mortgages will require between three and twenty percent down. For instance, Freddie Mac has a Home Possible program with a 3% down payment. You might be surprised at the ways you can qualify! Learn More about a few of our current Loan Programs or call to find out the very latest, so that you know how much to save. Remember that your credit score will influence your down payment. If your score is under 580, you will need 10% down as a minimum, and maybe as high as 20%.

DOCUMENTATION: In addition to proof of employment, you will need a few other kinds of documents. Get copies of your credit reports from the all three reporting agencies. You can go to them right here: EQUIFAX, EXPERIAN, and TRANSUNION.

Bank statements will also be requested. Locate your hard copies, or go online and print your statements. Bring the most recent two months. In addition to your banks statements for checking and savings, your portfolio of investments for the last two quarters will help the process. If you are a military veteran or active duty serviceman or woman, your status paperwork may help you qualify for special programs such as VA Loans. If you are divorced and getting support, and if you plan to use that source as part of your income, you may need to show your Divorce Decree as proof of that income.

If you have had some credit challenges, you may have to wait for a specified period of time. If you have a Chapter 7 bankruptcy in your past, you will need to wait two years from the date of discharge for a government backed loan, and four years for a conventional mortgage. A discharged Chapter 13 may be underwritten one day after discharge. You will want those papers handy. If you have had a foreclosure, you can expect to wait three years for FHA and USDA, and 2 years for a VA loan.

Ready to Qualify

PRE-QUALIFICATION: Determining your purchase power is an important first step before you begin house shopping. Give Sunset Mortgage a call, or fill out your online mortgage application today; we’ll help you determine your purchasing power so you know your price range. If you are pre-qualified, realtors know you’re serious and in the market to buy.

At Sunset, we understand that for some buyers, the home loan process is stressful and overwhelming. That’s why our first priority is to ease the path to home ownership for you. We’ll walk you through the entire process.

Dean, Jen, and Dana are always available from the first steps in mortgage qualification, until the keys are in your hands. We strive to be your lender for life and believe that you, too, deserve to own the home of your dreams.

Give us a call today, (251) 644-6188, or contact us online, and let Sunset Mortgage Bring YOU Home.

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