With the recession looming large over the economy, many people are doing their best to use the opportunity to buy a dream home of their own; especially those that have been staying in rented homes most of their lives. This is the right time for hunting around for a home when there must be many house closures that are occurring around. For purchasing a home a pre-qualified home loan certificate is probably the most important instruments that will make you eligible for hunting a home easier.
In order to know if you are suitable for a pre-qualified home loan or not, you have to approach a bank or a loan provider and submit application with all the information required by them. Your application will be vetted by the loan provider and decide if the application for loan can be approved. The following are the parts that are considered important in your application.
About your landlord
You have to supply all the details about your landlord if you are staying in a rented place. This data is to be provided for the previous two years. If you have shifted house in these two years you have to provide information of your present as well as previous landlords. Name, address and the contact details are to be given.
If divorced
If you are divorced you have to give documentary evidence like separation agreement and divorce decree, with your application.
Employment
To qualify for the pre-qualification it is important that you are employed currently, else you will be disqualified for a pre-qualified home loan. You have to be gainfully employed for at least two years. Therefore when you apply for pre-qualification you should provide name and address of your employers with whom you have worked during the last two years. Here W2 and 1099 forms should accompany the application. Salary slips for the last few months have also to be submitted; in order to prove that you have been genuinely receiving salary. In the event you are self-employed, you will not be in a position to give salary slips; in such a case you will have to submit tax return copies for the two previous years. Along with tax return you will have to submit profit and loss statement copies for the previous two years.
Financial information
If you want to pre-qualify for a home loan along with the application you will have to supply all your information regarding your financial standing. This should include all investments made in stocks along with form 401(k). Along with bank account details you have to provide information on all your liabilities and assets that you might have. In the event that you have multiple bank accounts, you have to give all the account numbers of all the accounts along with name of the banks. A copy of your present credit score should also be attached along with the application. You credit score is one of the main factor that determines whether you are eligible for pre-qualification.
If you can qualify for pre-qualify for a home loan, it will be very easy for you to find a real estate agent who will help you find your dream home. Also with a pre-qualification you will be in a better position to bargain and get preference over those who do not have a pre-qualification.