This guest blog post about the loan pre-approval process has been written by Shane Musselwhite of Guild Mortgage. If you have questions about the loan process or your specific situation, inquire with a trusted mortgage professional.
I know the feeling: the intimidation and concern that comes from going to meet with a stranger to talk about money. I experience a bit of it myself when applying for a loan of any kind and I’ve worked in lending and finance for over 30 years. Above all I hope first time buyers will look at the process as an education that can eventually lead to one of the largest and most important steps in their financial life.
I can’t tell you how many times I have met with clients who walked through my door with concern and fear, and 15 minutes into our meeting, I knew that they were well positioned to purchase their first home. An experienced lender is not in the business to pass judgment and you don’t need to be bashful about your finances. Chances are I have counseled with and helped clients just like you.
There is a ton of information about the mortgage process and qualification available to clients these days and to a degree it’s helpful. Unfortunately web sites, online calculators and even blogs like this one often times don’t explain that each file is a custom build that requires an experienced, full time lender to sort through the details and determine what a client is qualified for and which products best fit their needs. There are simply too many loan options and specific underwriting guidelines for each program for you to try and navigate them on your own.
Trust your Realtor’s recommendation and don’t be afraid to ask your loan officer about their time in the business, personal production and company volume. Working with someone who is experienced, works full time in the business and does a high volume of loans is important to a smooth process because they know first-hand what is required.
- Two years complete federal tax returns
- W2 forms
- Your last two pay stubs
- Two months of bank and asset statements.
If you’re new to the job market don’t let that stop you. Just be prepared to document what you have been doing for the past two years by having your college transcripts or other documentation in hand. Personally, I prefer that clients provide this documentation along with my pre-qualification form (a mini loan app that takes less that 10 minutes to complete) prior to our meeting so I can sort out the details prior to our meeting in person. Doing so makes our time together more effective allowing me to focus on the mortgage process in general (back to that educating role I mentioned earlier) and how they fit into the programs that are right for them. I’m always happy to have clients bring friends or family with them if they want another person to help them with the process.
Don’t be afraid and will pick up the phone and get the ball rolling. If now is not the right time for you to purchase your first home at least you will have a better understanding of the process and what you need to accomplish to be ready.
The information contained in this training has been prepared and distributed for educational purposes only. This training information shall not be construed as a guarantee of loan approval. All loans are subject to underwriter approval. Guild Mortgage Company is not affiliated with Keller Williams or Portland Real Estate Blog.