Steps To Get Pre Approved For a Home Loan

Buying a home is generally considered to be a milestone in a person’s life. It says that a person is ready to settle down in one place for many years to come, and it can also signal that a person is ready to start a family. However, there are many steps that a person needs to take to get approved for a mortgage.

Get Your Financial Paperwork Together

To get the best loan terms, a person will need a debt-to-income ratio of less than 43 percent on a conventional loan. The DTI limit for an FHA or USDA loan may be closer to 50 percent depending on a borrower’s overall profile. It will also be necessary to provide tax returns for the previous two years, and those who are self-employed may be asked for additional information about their income. Any source of funds that are received on a regular basis may be considered income on a mortgage application.

steps to get a home equity loan

Acquire Funds to Pay Closing Costs

For a traditional loan, a borrower will need to put 20 percent of a home’s purchase price down at closing. Document fees, property taxes and other fees may also be due at the time of closing. As part of the application process, a lender may want to see that a borrower has money in the bank and that it came from an approved source. Those who are using government loans to buy a home may be gifted money for a down payment or closing costs. (Read more on buying tips in a sellers market here.)

Start Loan Shopping Early

Talking to a preferred lender in a timely manner may make it easier to get pre-approved or pre-qualified for a loan. A loan officer in Las Vegas will collect a borrower’s information and estimate how much he or she may be eligible to borrow in a matter of minutes.

Copyright©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender. Licensed by the Department of Business Oversight under the California Financing Law. Loans made or arranged pursuant to a California Financing Law License. CA-DOC337203. Licensed Nevada Mortgage Lender. *Debt-To-Income (DTI) ratio is monthly income debt/expenses divided by gross monthly income.

John Drennen
Sales Manager

NMLS ID 337203

Cell 702-612-0802
Fax 866-846-7914