As broker/owner of wmre, I have clients quite often who are reluctant to begin the process of pre-qualification for a home loan (See my blog on Why Pre-Qualify for a Home Loan).  Many of these people are not aware that pre-qualification is just the very beginning of the home loan approval process. Pre-qualification simply means that someone is "qualified" to receive a loan, but it is not a guarantee that they will be "approved" to receive the loan. This "approval" comes with the more in depth "loan application" process.  With some preparation, pre-qualification can be done in minutes, not hours, and is done most times by telephone.  What preparation is needed to begin this process?

  • First you will want to select a lender.  You might consider asking for recommendations from your REALTOR®, friends or family.  It's not a bad idea to select several and interview each to make the final decision.
  • The second step will be to gather the needed information.  This exact list of needed info might vary a little, but a good place to start is:
Pay stubs from one full month's income
2 years W-2 Forms
2 months bank statements
1-401K statement
2 Years Tax Returns (if self-employed or bonus plus salary)
2 Years 1099s (for retirement or pension income) 
  • You will need to authorize the lender to pull your credit report(s).  In many cases, this will eliminate the need to supply debt information.

There, that wasn't so bad, was it?  In the majority of situations, you will have an answer on your pre-qualification in an hour or less.

Information was supplied by:

Lisa Roberts
Wells Fargo Home Mortgage
252-943-7742
Lisa.B.Roberts@wellsfargo.com
http://www.LisaRobertsOnline.com

The above website is full of very useful information regarding home mortgages, etc.  Feel free to contact Lisa if you have mortgage related questions.

Contact me at www.WarrenMooreRealEstate.com for your real estate needs.