Getting a Mortgage Loan
Hello, Jerry here with some tips, tricks, and mortgage requirements to purchasing a home.
Today we will be speaking on the subject matter of pre-qualification. Pre-qualification is one of the first and most important steps you can take to become a homeowner. This is where you step into a financial institution of your choice and they give you an answer as to how much they are willing to lend you to purchase a home, based on credit, income, and debt.
Some of the general requirements that the lenders look for are:
1- Employment: To be employed for at least two years, although there are some exceptions to the rule, this is what most lenders look for. (Don’t have to be working on the same place for 2 years and there can be gaps in between employment)
2- Paychecks: Have at least the two months of paycheck stubs ready for review. The lender needs this to average your monthly income and make sure you have a steady job.
3- Bank Statements: Please gather the previous most recent bank statements (2 months’ worth) where you keep your money. The money needs to be in a bank and not under the mattress.
4- Income Tax Forms: Please provide lender with W-2 or 1099 Forms depending on how you are paid.
And finally closing costs. This is not a requirement, but be prepared to pay your own closing costs. We are currently in a sellers’ market which means paying your own closing costs will help you and give you an edge when submitting an offer. Closing costs usually range I want to say between 3 to 4.5% of the financing amount. The closing costs will vary depending on purchase price, down payment, credit score, lender, and many other factors.
Well guys if you have any other questions or would like more detailed information on the process of becoming a homeowner, please reach out to me today
Note: The recommendations on this video are based on the current market for El Paso, TX. The real estate market on other cities likely will be different and we recommend you to hire a local Realtor® for your area.