Pre-qualifying for financing is one of the first steps when looking to purchase a new home. It means that a loan officer has taken some information from the borrower, and made a tentative decision, but not verified any of it. A borrower will give their employment, income and asset information, the amount of current monthly debt and their general credit worthiness. Based on this quick work up the borrower will be told that they pre-qualify for a certain loan amount.

Qualifying for Financing

You can save your valuable time if you provide the following documents to your lender at the time you complete your loan application. Additional documents may be requested, depending on the lender and the type of financing.

• W-2 statements for the past 2 years
• Pay stubs to cover the most recent 30 days
• Residence addresses for the past 2 years
• Names and addresses of all employers for the past 2 years
• Names, addresses and phone numbers of landlords for past 2 years
• 2 months of statements on all bank accounts
• Names, addresses, account numbers, balances, and monthly payment amounts on all open loans and credit cards
• Addresses of all real estate owned
• If you are self-employed, complete tax returns for the last 2 years
• Signed copy of the contract or purchase agreement of the property you are financing
• Check for the amount of the credit report and appraisal

Calculating Your Mortgage

Use our mortgage calculator to determine what the monthly principal and interest payment would be based on the purchase price of the property you want. Don’t forget to add the monthly real estate tax and monthly insurance payment to that amount.