3 Tips For Getting A Conforming Loan Pre-Approval
Do you need to get a conforming loan for your upcoming home purchase, otherwise known as a mortgage? If so, the first step will be to get pre-approved for your loan. Here is what you need to know to ensure that you get pre-approved without any issues that will affect you later on.
Talk To A Lender Prior To Getting Pre-Approved
A common problem that people run into when getting pre-approved for a loan is not sitting down and talking to the loan officer about their situation. This is because some people do the bare minimum for the pre-approval process by just supplying basic income, but there are often other factors at play that go into a pre-approval. For example, the formal approval process will involve looking at the current debts that you still owe, your employment history, the way that you are paid as a salaried employee or freelancer, and other things of that nature.
If the loan officer is willing to sit down with you and learn more about your financial situation, you won't have those surprises that come up later when formally gathering your information for the final approval. This will ensure that your financing is not derailed because the loan officer never had the full picture from the first meeting.
Get Proper Employment Verification
There is a lot that goes into employment verification that you may not be aware of. Employment verification is not just about confirming that you're employed and are making your current salary. The lender is going to want to know how long you've been employed and what you've made each year. In addition, they'll be looking to break down your earnings in terms of your base salary, commissions, and bonuses that you've received. This will help get a full picture of how much you make and where that can go in the future, either up or down. If you gather this information and have it in the pre-approval process, things will go smoother later on.
Avoid Big Purchases
Once you have your mortgage pre-approval, make sure to not go out and make big purchases until after you purchase your home. That is because taking on new debts can throw off your debt-to-income ratio. It's possible that you once qualified for your mortgage, but taking on an additional loan will throw off that ratio and make you seem too risky for the home that you want to purchase.
Contact a local mortgage lender to get more tips.