Know about the documents required for mortgage loan approval
Mortgage loan is a type of secured loan that is given by placing asset as a collateral by the bank. The mortgage loan can be of house loan, loan against property or commercial loan. You can take any of the loan according to your requirement. The pre approval is required for the further process of the loan. Many mortgage lenders are making a quick pre qualification on online or phone. But a true mortgage approval requires the complete review of the documents that are required to apply the mortgage loan. The mortgage loan is taken by many real estate agents. Many real estate agents buy the land and take the required permissions for making them plots. Some of the real estate agents sell the plots directly to the buyers seeking some profits. Some of them build the house by investing their own money and sell them for the profits. The money invested by the real estate agents is mostly the mortgage loan. They can easily pay off the loan once they sell the house. For long term tenor duration, the interest rate changes from time to time. You can change to the current FHA streamline rates when ever you notice the fall in interest rate.
More information about the pre approval for mortgage loan:
- The pre approval of the mortgage loan will help to assess the range of money you qualify to get for the property you mortgage. The total estimation of values of the asset kept as collateral and the housing payment.
- The paperwork for the entire process if done ahead, the pre approval process becomes very simple. To get a loan pre approval letter, you have to start filling a application and then have to submit some documents required for the processing of mortgage loan.
- The documents required for the pre approval are:
- For a wage earner: Tax returns of last two years, pay stubs, two bank statements of the recent transactions, investment accounts, liquids assets.
- For self employed person: Tax returns of personal and business for last two years, P and L statement of last quarter.
- A letter of explanation for the new line of work or employment gap and late payments or judgements on credit report.
- Other documents required are the mortgage payment coupons if present, child support documentation, bankruptcy discharge, lease agreements
- Many borrowers ask to explain the complete loan process for confirmation even through they know some part of the process. You need to have the complete documents for the pre approval. You may waste your time in roaming around the banks if your documentation is not correct.
Hope you are clear with the pre approval documentation and process.