In South Florida, the costs of home prices are soaring, with prices increasing by 13% this year. The increasing demand for properties means that you will face a multiple offer situation. You will compete with other buyers that are interested in the same house and putting in their offers.
The most critical thing for getting the winning offer is to have all of your paperwork in order. The owner wants to see that you have your financing in place with a pre-approval letter before accepting your terms.
Before looking at any properties, the best approach is to gather all of your information together. Then, submit the documents to the mortgage company in Coral Springs for processing and approval. In this article, we will look at what documents you will need to receive approval for a home loan.
Proof of Income
To determine the mortgage you will qualify for and the down payment, lenders want to know what you are earning. The lender wants to see proof of income such as pay stubs and W-2s to decide your current earnings.
If you are self-employed or receive child support, you will have to submit a 1099 that shows your pre-tax income. If you are receiving child support payments, you need to show direct deposits into your bank account.
Next, the lender wants to see your tax returns through Form 4056-T for the last two years. The lender ensures that your annual income is consistent with the pay stubs, W-2s, 1099s, and child support.
Lenders are looking at the overall financial picture to understand what is happening with your situation.
Ace Mortgage can help you every step of the way to find the best home loan for you. We specialize in mortgages and use all our resources to assist you in securing the financing to buy a home.
Assets
Lenders want to know your total assets to create a risk profile such as bank statements, retirement/investment accounts, and life insurance. The lender is checking to see if you have several months of mortgage payments, a cash reserve, the down payment, and closing costs.
The information plays a role in deciding the mortgage you will qualify for during the underwriting process. This makes things easier in creating a pre-approval letter that you submit to the owner when making an offer.
Ace Mortgage will walk you through the entire process for securing a loan and the necessary paperwork. We work with various lenders and can help you get the right loan to buy your dream house.
Identification and Credit History
The lender wants to see a photo ID to verify your identity, prevent mortgage fraud, and identity theft.
Your credit history is examined to ensure you pay your bills on time, with no delinquencies or write-offs. All of this information determines the loans you qualify for, the down payment, and approval amounts.
Ace Mortgage works with different home loans, even for those with not-so-perfect credit. We can help you to find a loan that gives you the financing to buy a new home today. Interest rates are low and you can receive favorable terms from lenders for the financing.
Rental History
If you are renting, lenders will want verification that you are paying the rent on time. Lenders will request canceled checks or a letter from the landlord stating you are current on your rent and never late.
The rental history is critical to ensure you can make the mortgage payments on time. Those without an extensive credit history will see lenders asking for this information to verify the risk.
Ace Mortgage offers loans for those without an extensive credit history, and we can help you find the right mortgage.
A Gift Letter
If you have a family member or friend help you buy a home, you will need a gift letter. This document states the relationship to the person, the amount of the gift, and the timeframe. All this information shows that the money is a gift for purchasing a home versus a personal loan.
Ace Mortgage can help you to get all of the necessary paperwork together to process a mortgage in Coral Springs.
Get a Mortgage Today
To receive a home loan, you will need to present this documentation to any mortgage service company in Coral Springs. Call Ace Mortgage today at 954-637-7012 and put our experience, professionalism, and knowledge to work for you. Interest rates are at historic lows, and now is the perfect time to buy the home of your dreams.
We are on West Sample Road, near Mullins Park and the Da Vinci Preschool Academy.