What you need to get pre-approved to buy Treasure Coast real estate.

Getting these documents to your lender will make for a quick mortgage pre-approval process and get you ready to start looking at Treasure Coast homes. This should be the first step before you even think to start looking at what is on the market, because it gives you an idea of what you can afford and how to finance a Treasure Coast home. You'll also learn what loan programs you qualify for and get an estimate for your closing costs and total cash needed to buy a home. These are all the steps you'll want to get covered: 

Treasure Coast Mortgage Pre-approval

1. Proof of Income

Verifying your income is usually an easy step. For W-2 employees, you'll usually want to have two years of tax returns and two most-recent pay stubs handy. Self-employed individuals will usually need a couple of years of profit and loss statements and tax returns for their businesses. If you are a contractor, you'll also need your Form 1099 that you get from your employer. If you have other income, such as rental properties, include that also to further increase your case. Along with your income information, your lender will likely call your employer to verify your occupational status all the way up to the day of closing!

2. Proof of Assets

Borrowers should have 60 days of activity for each asset-holding bank and brokerage accounts. You'll also want to include other retirement and investment accounts such as IRAs, 401k, mutual funds, stocks, CDs, and the like. 

3. Debt Liability

Your debt-to-income ratio is very important when getting preapproved for a mortgage. Before you start looking at Treasure Coast homes, list all of your monthly debt payments (credit cards, other mortgages, student loans, etc.) and give that to the lender. Also let your lender know if you intend to sell a Treasure Coast home that you currently own, perform a 1031 exchange, or rent out your current residence. You'll also want to let your lender know if you will be getting gift funds from friends or family members to help fund the transaction.

5. Personal Documents

When you go to get prequalified for a mortgage, bring your driver's license and social security card so your lender can make copies. You'll have to sign to give them approval to pull your credit report and then they'll probably request additional paperwork from there.

6. Other Things to Consider

Additional documentation will usually be requested if an individual has undergone a bankruptcy, divorce, foreclosure, or other similar life event.

If you are still in the beginning process of getting pre-approved for a Treasure Coast home, work on paying down debts, increasing credit score, and ramping up your income if and when possible. This will allow you to get a lower interest rate and dictate for yourself how much you want to spend on your future home. If you have any specific questions, or want help getting pre-approved for a mortgage, contact us today.