Many companies claim to be the best mortgage lenders in Rochester, Michigan. But how many times have you been disappointed by a company calling itself “the best”? When it comes to mortgages, did that “best” company make you feel uncomfortable? Did it seem that they didn’t really listen to your needs, rather they tried to influence you into taking a loan you really didn’t feel was best for you? Then you need to work with Gem Home Loans. We never try to pull any of those kinds of tricks, and we do everything we can to make the homebuying process as easy and enjoyable as possible.
In order to do that, we’ll try to help you obtain a pre-approval letter. It will be a huge help when you have this letter to show the owner of the house you want. The letter shows them that you’ll definitely be able to obtain the financing needed to purchase the home. You’ll find it a whole lot easier to negotiate a fair price, and you’ll be miles ahead of the other people trying to buy the same house you’re interested in.
So, how do you go about getting that letter? Here are some of the things you’ll need.
You’ll probably need to show the lender at least two years of W-2s so that they can verify your income. Also, you’ll probably need to show proof of your recent pay, such as pay stubs. Have you earned extra income, through a bonus at work or an insurance settlement? You should expect to need to have to show that as well.
No lender, of course, is going to want to approve a loan unless it knows you have the ways and means to handle the down payment, closing costs and monthly payments. So, you’ll probably need statements from not only your bank account, but also any investment accounts if applicable. If you’re going for a conventional loan, you might have to put down as much as 20 percent of the purchase price. A lender is going to want to know you can swing it.
This is a huge factor when it comes to getting a pre-approval letter. If you don’t have a score of at least 620, the odds of you being able to get that letter will, in most cases, be pretty low. That might not be the case if you’re looking for an FHA loan, but the vast majority of the time your score can’t be lower than 620.
As you probably already know, the higher your score, the better the interest rate you’ll get. If your score is 760 or higher, your rate will very likely be fantastic. In general, the lower your score, the higher your down payment will be.
You’ll also have to prove that you not only have enough money, but that your income is steady as well. The lender might call your employer to verify you work there. But what if you’re self-employed? That can get pretty complicated. You’ll have to show you have a stable income, and that there’s a high demand for the services you provide, or the products you sell.
Confused? Let the best mortgage lenders in Rochester, Michigan clear things up. Contact Gem Home Loans online or call (248) 780-1030.