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Mortgage Prequalification
Before even looking for your first house, you can get pre-qualified for a loan ensuring the rest of the process is hassle-free.
Three Peaks Mortgage can help you get pre-qualified and on your way to home ownership!
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Contact one of our purchase specialists today to start your pre-qualification today.
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How to Pre-Qualify for a Mortgage in 5 Easy Steps
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Learn about your debt to income ratio
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Gather assets
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Know your credit score
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Save for your down payment
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Research the home loan that is best for you
Make sure your income can cover your mortgage:
Any lender will need to see proof of income to see how much they can lend you. This will include your W-2 wage statements for the past two years and sometimes we will require tax returns from the past two years. You will also need current pay stubs showing your year-to-date income. What if you are self-employed? Or recently started a business that is growing and thriving? Many people are starting their own businesses these days and banks have taken notice of this trend. You can pre-qualify for a mortgage loan being self-employed. We basically need the same documentation as a W-2 employee. Two years of tax returns and paystubs if you pay yourself a wage. We will need to see bank statements from your personal accounts as well as your business accounts.
How many assets do you have:
Lenders need to see your assets to make sure you are liquid enough to cover the closing costs and down payment. Your down payment can vary by loan type. A bank account statements will prove that the borrower has funds for a required down payment, cash reserves and closing costs. Assets include things like your bank accounts, stocks and bonds, IRAs or 401(k)’s, and monetary gifts. Be sure to get these things together so the lender gets the full scope of your finances when working toward mortgage prequalification in Colorado.
Pulling your credit report:
When starting your journey to prequalify for a mortgage, we will need to pull your credit report. There could be something on your credit report that slipped your mind that could prevent you from qualifying for a mortgage loan, but we will talk to you about that and help you with solutions if that’s the case. You also want to make sure everything on the credit report is accurate. If you see a discrepancy on your credit report, then you need to clear those up promptly. We can help with that process. Credit is a huge piece of the mortgage process and we will educate you on any credit issues that may rise.
Do you have a down payment saved up?
Many think you must have a down payment saved up before you can buy a house. That is not always the case. Having a down payment will decrease your mortgage insurance and interest rate. However, that does not mean you must have one to purchase a home. Use a mortgage calculator to determine what your monthly payments would be with and without a down payment and see what you can afford before you try to achieve mortgage prequalification. This is a fun tool but your most reliable loan information will come after you speak with one of us at Three Peaks Mortgage.
A Home loan that is designed specifically for you:
If you served in the military or are actively serving in the military, Our VA loans are a great choice. These loans typically have more options included in them than traditional home loans and a good option to look at when looking at mortgage prequalification. The VA loan offers perks like no PMI, no money down, and the availability of jumbo loans. In fact, there are many great loan options out there. If you’re a first-time home buyer, we can most likely get you qualified for an FHA loan or a 3% down conventional loan. Check out the qualifications for 15 year and 30 year fixed rate mortgages. If you choose to re-finance down the road, these fixed-rate mortgages are a great option. Whatever your life looks like at the time, we can find the perfect loan for you!
It is important to get pre-qualified as it gives you the power to bargain further since you have mortgage financing. This can offer peace of mind when home shopping.
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Whether it’s your first or fifth home, buying a home should be a great experience. We know the loan process and learning how to prequalify for a mortgage can seem overwhelming to the untrained eye. Let Three Peaks Mortgage help take you through the process of mortgage prequalification. Customer service is at the core of our business, and we have a variety of loan options to suit your needs. Call us today.