When the market is hot and multiple buyers are competing for the best homes, you need to do more than offer the highest price. You also have to offer a solid assurance that you either have the cash or the ability to close on a mortgage loan for the price you’ve offered.
Pre-qualification isn’t good enough, and really never was. The next step is pre-approval, and today, that isn’t good enough either.
To give that home seller the assurance he or she wants, choose a lender who will pre-underwrite your home loan.
What’s the difference?
When a lender gives you a pre-approval it means that he or she has taken a look at your credit scores, your employment, and your income and expenses. However, in many cases they haven’t taken the last step. They’ve failed to look at your tax returns.
Tax returns are no longer merely for proof of your W-2 income.
Under the new Freddie and Fannie guidelines, the lender must deduct rental losses, schedule C losses, and form 2106 deductions (employee business expense) from your qualifying income. Never mind that many of those losses might be entirely due to one-time events such as furnishing your home office or putting new roofing on your apartment building.
Thus, a borrower who looks well-qualified at first glance may be absolutely un-qualified based on his or her income tax deductions.
That’s why the Mike Clover group has every loan application pre-underwritten before we issue a letter of pre-approval. We want to be sure that when we say a buyer is approved, they are truly approved.
In order to give that assurance, we require all W-2 borrowers to supply us with the following:
– Last 2 years W-2 & Last 2 years tax returns, all pages.
– Paycheck stubs for the last 30 days
– Bank Statements for the last 2 months on all accounts
– Current Statements on Investment Accounts, 401k, etc. if needed
– Landlord Information (Name, Address, & Numbers for last 2 years)
– Employment Information (Name, Address, & Numbers for last 2 years)
– Copy of Driver’s License
(Self-employed borrowers and those seeking a refinance must submit additional documents.)
So before you go shopping, get in touch. Call us today at 1-800-223-7409 or apply on line at http://www.mikeclover.com. We’ll be happy to get you pre-approved and ready to find your new home.
Homewood Mortgage, LLC
Toll FREE: 1-800-223-7409
18170 Dallas Pkwy
Dallas, TX 75287