Are you currently thinking of buying a new home in Alabama or Florida? If so, there are four things you should have ready to present before applying for mortgage loan pre-approval. United Mortgage Group is helping you put your best foot forward when it comes to seeking the funding to purchase your new property. By having these requirements ready to go, you’ll be prepared to make your initial offer count!

Proof of Income

If you’re serious about putting in an offer on a new property, be prepared to present a few different documents to prove you have the income needed to make a decent down payment and pay the monthly mortgage on time. Most lenders require buyers to have their W-2 wage statements from the past two years and recent pay stubs dating back the previous two months. You’ll also need to present any documentation proving additional income like alimony payments and bonuses. 

Proof of Assets

Yes, we know — the pre-approval process can be challenging, but that’s a good thing. If you want to impress your respective lender, have your most recent bank and investment statements ready to prove that you have the capital to make a substantial down payment, cover closing costs, and have savings left to fall back on. These rules are in place to protect you from buying a house that you can’t afford, helping you keep your home purchase on budget.

A Solid Credit Rating

To really make a solid offer on a new property, a good credit rating can go a long way. The industry standard for a mortgage loan qualification is a FICO score of 620 or higher. Keep in mind that this is to approve a conventional loan. It’s important to note that buyers with a FICO score of 760 are usually offered the lowest mortgage rates, refinance rates, and better terms overall. While it is still possible to secure mortgage loans with lower credit scores, be prepared to have a much larger down payment ready to qualify for them.

Employment Verification

To really make a solid offer on a new property, a good credit rating can go a long way. The industry standard for a mortgage loan qualification is a FICO score of 620 or higher. Keep in mind that this is to approve a conventional loan. It’s important to note that buyers with a FICO score of 760 are usually offered the lowest mortgage rates, refinance rates, and better terms overall. While it is still possible to secure mortgage loans with lower credit scores, be prepared to have a much larger down payment ready to qualify for them.

If you still have questions about the pre-approval process, United Mortgage Group is here to help! Contact us today for a free home loan quote on all Florida and Alabama properties! By preparing the information we’ve outlined today’, you’ll definitely improve your chances for mortgage loan pre-approval. If you have more questions about the home buying process, be sure to explore more of our blogs now!