San Diego, CA (PRWEB) January 20, 2014
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love continues to provide help to loan borrowers everywhere by helping them understand the home loan pre approval process and how obtaining pre approval helps their chances of getting the home of their dreams, in a new guide featured on the website.
The article says, “Unlike pre-qualifying, which simply relies on your best estimates about your financial situation, the more involved process of preapproval requires you to provide the prospective lender with documents that will be used to verify your financial and employment situation. These documents are required of both you and your co-borrower, if applicable. Ensuring you have these documents available at the start can help to speed up the preapproval process.”
The documents that are usually required for pre approval include:
- W2s from the past two years of employment
- Pay stubs from at least the previous three months
- State and federal tax returns for the past two years
- Banking statements for checking and savings accounts over the past three months
- Any statements or paperwork over the past two months related to other assets, such as stocks, bonds or retirement accounts
- The name and phone number of the borrower’s current landlord, if applicable
- Any divorce decrees, if applicable
Other documents may be required; however, the above list should give borrowers a good idea of what they should have on hand. Self-employed borrowers will need to bring business tax forms for the past two years; year-to-date profit and loss statements and year-to-date balance sheet in place of wage statements. The article also advises borrowers to review their credit reports and correct any errors they may find. Loan Love says,
“During the preapproval process, the loan officer will pull a copy of your credit report to look for any red flags, such as late payments, charge offs and reckless use of credit. A surprising number of people have errors on their credit report, however, so it pays to get a copy of your credit report (and that of your co-borrower, if applicable) and ensure all the information is accurate before speaking with a lender. Each of the three big credit bureaus—TransUnion, Experian and Equifax—have information available on their websites explaining how to correct a mistake or dispute information in a report generated by them. You can request one free copy of your credit report each year without incurring a cost. The official site for doing so is annualcreditreport.com.”
For more information and tips for first time home buyers on the pre approval process, please click here to read the full article on LoanLove.com.