I Want To Buy A House. Step One...Pre-Approval.

I'm blessed to get many calls per year from people either wanting to see one of my listings off "sign-calls", or they want to see someone else's listing and called me because they were in my leads program or they are ready to buy a house and were referred to me recently. In all cases, my first two questions are always, "Do you already have a Realtor you are working with?" and "Would you please send me your pre-approval letter, or give me your lender's contact info?"

It amazes me how many agents don't ask that first.

I either get a long silent pause, an immediate "I don't have a lender" or "what's a preapproval letter?"

That is step one, even before we go look at homes, after all, how do we know you can afford it and can secure a loan to do so? Realtors only show homes you'd potentially buy; e.g. offer on that same day you saw the home; we do not show homes...just to show homes.

So, here's what's needed to get preapproval (not just pre-qualified) in CA as shared with me by my #1 lender and fellow Rainmaker, Jason Gordon:

DOCUMENT CHECKLIST:

Income:

• Pay-stubs: most recent 30 days (to document all sources of income)
• W2/1099 Forms: 2012 & 2013
• Federal Tax Returns (all pages): 2009 & 2010

1.      Personal

2.      Business/Corporate (if applicable)

Assets:

• Checking & Savings Account Statements (all pages): Most recent 3 months
• Additional Investments and/or Retirement Account Statements: Most recent 3 months (or quarterly) statements

Miscellaneous:

• Legible copy of Drivers License for each Borrower

·         Legible copy of Social Security Card or Passport for each Borrower

·         (If you are Self-Employed): Business License to provide evidence of:

1.      At least 2 years in business-for-self

2.      That business is still active (unexpired business license is perfect)

·         For each residential property you currently own (if applicable):

1.      Evidence of Homeowners Insurance (“Declarations Page” which shows your coverage amounts)

2.      Recent statement for your mortgage

3.      Lease Agreements (if applicable)

4.      Homeowner Association (HOA) Contact Information & Monthly HOA Dues Payment Amount (if applicable)

·         Divorce Decree (if applicable)

·         Evidence of VA Eligibility (if applicable)

·         Bankruptcy Discharge Papers (if applicable)

Friendly Tips (to ensure the smoothest experience possible):

·         Most of the above referenced documents can be acquired/sent electronically via a “PDF” file. For example:

o   Tax Returns – Your CPA can email these to you instead of you needing to dig through your file cabinets for these

o   Bank Statements – Nearly every Bank now has the ability to download bank statements on their websites (this can help you save time/expense of copying extra pages)

·         “All pages” truly means ALL PAGES

o   Even if a page of your bank statements or tax returns appears to be insignificant, current underwriting guidelines (for all Lenders) want every page (even if it is a blank page that only says “Page 4 of 4”)

My endorsement to this Top 10 San Diego blogger on Active Rain:

Jason E. Gordon

Residential Mortgage Specialist

CMPS, CDPE, CMC, NMLS #259027

AmeriFirst Financial Incorporated

Direct Lender / Wholesale Broker

12544 High Bluff Drive, Suite 100 | San Diego | CA | 92130

1000 Aviara Parkway, Suite 110 | Carlsbad | CA | 92011
Direct 619-200-8031 | Toll Free 888-832-6420 | Fax 888-392-7699

www.ApprovingSD.com | jgordon@amerifirst.us