I’m Charmaine Roberts, a mortgage broker with an expertise at offering financing options to people looking to purchase or refinance real estate. I provide free individual consultations to assess your personal situation and determine the possibility of your loan approval. I’ve partnered with multiple lenders that work with excellent or challenged credit.
Homeownership is the “American Dream”, it doesn’t matter where you are in life young adult, mid- life, mature adult, first-time buyer, growing family upgrade, empty nester or investor. Purchasing real estate is and will forever be part of the “American Dream” and wealth building plan. Prior to the real estate crash in 2008 qualifying for a mortgage was a relatively easy process. Good credit history, verifiable income or savings were not a requirement. A person with a 500-credit score could obtain 100% financing and “state” their income which means paystubs, W2s and tax returns were not reviewed or verified.
Today qualifying for a mortgage is a paperwork intense process that involves a deep dive into your credit history, employment, income and bank accounts. Before shopping for a home your real estate agent wants a “Pre-Approval Letter” to show proof of your income, credit, and assets that have been verified.
This is where you contact me. The first step to pre-qualifying for a loan includes the completion of a loan application. The loan application provides me the standard information that’ll be verified by the lender. A minimum of your last two year’s residence history, employment history, all sources of income, liabilities, bank accounts, and any other properties you currently own. Next, your application and credit report will be submitted through an automated underwriting system for an initial loan decision. That initial automated underwriting system decision provides guidance as to what items are verified next.
The standard pre-qualification documents to review include:
The credit report
Your last thirty days of pay stubs
Your last 2 years of W2 statements
Last two years of Federal Tax Returns
60 days of bank statements
As your loan officer, I’ll also request a written “Verification of Employment” from your employers and a written Verification of Rent from your landlord. A lender wants written proof that you have paid your rent on time, meaning zero 30 day late payments made over the last 12 months. If your landlord is a private party meaning you do not pay rent to a property management company or a leasing office, then a lender will also require you to provide your last 12 months of cleared rent checks from your bank. If you do not use personal checks to pay your rent and instead you withdraw cash and make your rent payment with a money order, then a lender will want to see your last 12 months of transaction history to show the rent being withdrawn from your bank account.
Among other things, a written “Verification of Employment” letter verifies the employment information you provided on your loan application and most importantly it spells out any overtime, bonus or commission income you’ve earned. A lender will allow the use of these additional types of income if you’ve been on the job and earned the income for at least the last two years.
Bank accounts are verified to show you have the estimated money needed to close on a loan to include your down payment, if applicable closing cost and any required reserves. A reserve is one month mortgage payment sitting in the bank after closing. Lenders are also looking at your bank accounts to verify any abnormal large deposits and to confirm you have no overdrafts, negative balances or non- sufficient funds transactions. These types of transactions on your bank account must be explained and could result in the denial of a loan.
Your credit score, credit history, income, and assets set the stage for the maximum percent financing and loan amount a lender will fund on a purchase for you. Upon completion of the pre-qualification process and we have written verification that you meet a lender’s income, credit ,and asset guidelines then a “Pre-Approval Letter” is issued so you can begin shopping for a home.