Applying for a Mortgage

Little Things Count

Applying for a mortgage

Mortgage preapproval versus prequalified

I prefer the term preapproved. Preapproved means the loan officer has verified your: income, assets and credit.   You have been approved with a “DU” Direct Underwriting eligible status from Fannie Mae.  A prequalification is nothing more than a phone conversation involving no credit or other verifications.  A good loan officer cannot write a “preapproval letter” without verification of income and assets documentation.  Applying for a mortgage is a business transaction that requires exact figures, not guesses or estimates. Having a preapproval letter may mean you will get the home instead of the buyer who only has a prequalification letter.

Items needed for a full preapproval letter include at least the following:

Copy of drivers license

  • Most recent
    • 2 years of W2s
    • Federal Tax Returns 2 years
    • most recent 30 days pay stubs
    • 2 months (all pages even if they’re blank)
    • These documents are normally available online banking under the ‘Documents’ or ‘Statements’ tab.
      • Checking
      • Savings
      • Retirement account statements
  • If you are an owner of any business, no matter how small the percentage, or self-employed in any capacity inform the loan officer

If applicable, bankruptcy discharge papers, divorce decree, etc.The first step, after an introductory phone call, is a personal appointment with a loan officer.  Be sure to bring all your documentation papers. If you have a good well-seasoned loan officer and mortgage company your working with they’ll have a web site. For instance, Steve Erb of Bell Mortgage, a person and mortgage company I’ve worked with for over 20 years has www.SteveErb.com. There the online application takes about twenty minutes and gives Steve permission to “pull credit”. Then Audrey, Steve’s assistant, sends you an email with the portions of the above list Steve will need.  A preapproval letter is sent email to you and your realtor within 24 hours after receiving the requested documentation.

 

Applying for a mortgage the First Step

The first step, after an introductory phone call, is a personal appointment with a loan officer.  Be sure to bring all your documentation papers. If you have a good well-seasoned loan officer and mortgage company your working with they’ll have a web site. For instance, Steve Erb of Bell Mortgage, a person and mortgage company I’ve worked with for over 20 years has www.SteveErb.com. There the online application takes about twenty minutes and gives Steve permission to “pull credit”. Then Audrey, Steve’s assistant, sends you an email with the portions of the above list Steve will need.  A preapproval letter is sent email to you and your realtor within 24 hours after receiving the requested documentation.

Bell Mortgage, established in 1880, is also the oldest and largest privately held mortgage company in the State of Minnesota.  I remember that day, it was raining. Kidding just kidding the sun was shining.

Your mortgage approval is not final until closing!

You are in the process of buying a home.  Your credit must not change or be adversely affected in any way.  Until you sign for your new home and take possession approval can be pulled!

Your Lender will recertify your approval just prior to closing. If you want to buy new furniture for your new home, change jobs or co-sign for Jamie’s new car be patient. There’s always time to do that after the closing.

 Start each sentence with Don’t

  • change jobs, become self-employed, or quit your job
  • buy a car, truck or van (or you may be living in it)
  • use credit cards excessively or let your accounts fall behind
  • spend money you have set aside for closing
  • pay off debts or liabilities from your loan application without first consulting with your loan officer
  • buy furniture, electronics, appliances or other expensive items
  • have your credit report pulled by other creditors
  • make large deposits without first consulting with your loan officer.  Any deposit, outside of payroll, $1,000 or more must be documented
  • change banks or bank accounts
  • co-sign any type of loan for anyone
  • keep information from your loan officer. Be upfront from the start makes the process easier
  • plan any vacations and if you’ve one planned advise you loan officer
  • accept a gift for down payment

That’s a lot of “don’ts” I know.  But every realtor and every loan officer can tell you about closings that fell apart because of don’ts.  Not all of that don’ts can be fixed. It’s really the pits when your loan officer must tell you “you need to get a hotel room until you can find a rental”. It does happen, it really does.

Credits

I am not a loan officer.   I contacted one I’ve known and worked with for a very long time Steve Erb. Steve has the advantage of working for Bell Mortgage which I know to be a good mortgage company. In this capacity Steve has been most helpful reminding me of the Don’ts.

If you wish to work with trustworthy loan officer and lender you might try;

Steve Erb

Senior Loan Officer

NMLS# 471859

Email SErb@BellBanks.com

612-963-5602

Website www.SteveErb.com

 

 

 

 

 

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