Don’t let the paperwork confuse you for a Minnesota home loan pre-approval
When it comes time to move forward on your Minnesota home loan pre-approval process and you’ve already filled out the online app be prepared to locate your paperwork.
Before you do make sure to communicate with your mortgage person when you feel stuck and understand that they need the paperwork to send into the underwriter at the lender to help get you pre-approved. Not everyone is putting 20% down and has a 750 credit score.
The more your score is under 650 and the less you put down the more they are going to really look closely at your paperwork.
An experienced mortgage person has years and even decades of experience so they understand how the underwriter is going to look at our loan and they have to process the paperwork with you to put together the full package to help increase your chance of success in getting a pre-approval on a Minnesota home loan.
Be prepared to find the last 2 months of taxes, W-2s, 1099’s, bank statements, savings statements, 401k documents may be needed. Find paid bills even like Netflix or credit cards in the situation where you don’t have a lot of credit history.
It will be important to know if you have any collections or judgments on your credit report as this will limit your loan programs available or require more of a down payment.
In cases like USDA with 100% financing vs. 3.5% financing often your unpaid collections will be less than the 3.5% upfront. Paying off old collections may satisfy your usda lender, but not necessarily raise your credit score.
Disability paperwork, award letters for VA, DD214 form, all important forms you will need. Be prepared to show bank statements to prove rent has been paid the last 12 months. The mortgage person will want to call the HR department to verify your employment, hours and time on the job.
In general when the lender looks for late payments they are looking for more than 30 days late, not just a couple of days. Be prepared to show some money for reserves on a bank statement that isn’t always needed for the closing sometimes it shows the lender you have an emergency fund.
As you get closer to a closing you will get home insurance also. The lender will Wang to see your major bills like rent, car payments, child support, student loans, etc to factor your debt to income ratio.
Remember that some things that you think have you stuck like back child support, taxes, student loans, etc if a lender sees a payment arrangement in good standing that can go a long ways.
Follow up with your mortgage person throughout the week and just know getting paperwork to him/her is an important part of the process and the more organized you are and quicker you are at providing it, the faster and smoother the entire process can go.