There are a lot of mortgage companies in Troy, Michigan, but none of them have the commitment to client satisfaction you’ll find at Gem Home Loans. We want your home buying experience to be fun and exciting, as it should be. You shouldn’t have to spend your time constantly worrying about whether you’ll be able to get into the house you want. We work hard to take the complexity and frustration out of the process, so that our clients can look forward to the experience, and not dread the stress.
In order to make buying a home as easy as possible, it will be a big help to have a pre-approval letter you can show to the seller. This will make it a lot easier to negotiate a good price, because the seller will be 100 percent certain you’ll be able to get the financing you need. Here are just a few of the things you’ll need in order to get that pre-approval.
More than likely, you’ll need to show two years worth of W-2 statements to prove how much you made. You might also need to provide your income for the current year, as well as a certain number of recent pay stubs. If you’ve brought in any additional money, due to something like a work bonus, an insurance settlement or any alimony payments, you’ll probably need to show those as well. Finally, you’ll also need to provide your tax returns for the previous two years.
Next, you’ll need to prove you have the financial wherewithal to show that you have enough money to make a down payment and take care of your closing costs. The proof will come in the form of your bank statement and any investment accounts you hay have. The amount you’ll need to put down will depend on the type of loan you get. That could range from as little as $0 (for a VA loan) to 20 percent or more for a conventional loan.
Another one of the many factors that go into obtaining a pre-approval letter includes a good credit score. In most instances, your FICO score will have to be at least 620. However, many people can obtain loans with lower scores. In order to get the very best interest rate, you’ll probably need a credit score of at least 760. The lower your score, the more likely it will be that you’ll have to pay a larger down payment.
Proof of Employment
In order to get a loan, you’ll need to show that you have a stable source of income – for the vast majority of people, that means a steady job. Your lender will very likely call your employer to verify your employment. If you’re self-employed, you’ll need to do a lot more. For example, you’ll have to not only show you have stable income, but also show there’s a strong demand for the services or goods you sell.
You have choices when it comes to mortgage companies in Troy, Michigan. At Gem Home Loans, we want to be the ones you turn to first whenever you’re in the market for a new home. Learn more about how we can help by contacting us online or calling (248) 780-1030.