How to Get Your Home Loan Pre-Approved Quickly and Painlessly in Woodbridge, VA.
(One quick way would be to stop reading and pick up the phone and call your Woodbridge FHA/VA Lender - (703-497-3936)
Anyway mortgage loan approval has become more tedious and time consuming in today’s market. It has become more stringent and paperwork driven unlike a few years ago when lending was very”liberal” (basically if you had a pulse you could get a home loan...)
To get your home loan approved quickly and painlessly provide your loan officer with all the requested paperwork as soon as possible and be prepared to explain any situations that are outside of the normal such as large deposits into bank accounts, any late payments from the past, and a popular one is tax returns with large write-offs.
Here is a basic list of information needed by most lenders for mortgage pre-approval:
1.) Tax returns and W-2’s for last two years with all schedules
2.) Pay stubs for 30 days(all pages), if self employed provide business tax returns and year to date profit and loss statement
3.) Bank statements for last sixty days with all pages and your name on the account
4.) Name and phone number of current landlord
5.) Letter of explanation for any past credit issues or late payments
6.) Open communication between you and your lender of choice
I was inspired to write the post from two situations that I recently encountered while pre-approving clients for a mortgage.
- Client #1 was trying to get pre-approved for a VA 30 year fixed mortgage. She submitted all the requested information except her tax returns. When I questioned her about why she had not turned them in as of yet, she casually replied that she could not give me what she does not have…The client had not filed taxes for the last three years due to the fact she knew she owed the IRS Money. Needless to say I was hesitant to supply a pre-approval letter. Although we have investors that close loans with W-2’s only, if the investors pull a tax transcript after settlement (which they have the right to do as clients today typically sign an IRS form called a 4506T at closing ) guess who may have to buy back the loan at some point in the future (especially if the loan is not being paid on time)?
- Client #2 also was slow returning tax related information but upon receipt it was discovered that although he had a gross salary of $65,000 and his pay stubs verified this On his 2009 tax returns his “creative” tax preparer had write-offs of $18,000+ in “unreimbursed business expenses”for an employee. As we are in a conservative lending environment, I had to pre-approve the client for a lower amount based on his adjusted gross income after the large write-offs. Needless to say he did receive a large tax return this year which he was using as down payment but he was pre-approved for less than what we originally thought.
In summary different investors have different guidelines but listed above is the basic information that you will need for loan pre-approval. If your scenario is a little different or does not match the criteria perfectly that is okay, I can help! Communication is the key to getting you pre-approved quickly and painlessly with your Woodbridge FHA/VA Lender.
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