Applying for a loan and obtaining approval before a buyer finds a home they want to buy can be a distinct advantage. Making a loan application is going to need to be necessary eventually anyway unless they are going to pay cash for the home.
Pre-qualification is a procedure where you get an opinion from a mortgage officer about how much you qualify for. In the process, any obvious difficulties that might cause problems might be discovered. This process is always recommended but it doesn’t have the advantages of a pre-approval.
Pre-approval requires a complete application with credit reports and verifications. The Mortgage Company will issue a commitment subject to a specific interest rate and points and a satisfactory appraisal when the property is identified.
Time limits are usually placed on pre-approval commitments. It is recommended to be ready to look at homes and make a decision after you receive your pre-approval commitment.
The advantages of being pre-approved is:
Looking at the right-priced homes.
Avoiding disappointment in deciding on a home that you can’t afford.
Saving money with a seller who is confident about taking their home off the market with buyers who have a definite loan commitment.
One less contingency that the seller will be concerned with to get their home sold.
Closing more quickly the lengthiest contingency is usually the mortgage approval. The appraisal can be done quickly.
Minimizing the anxiety of not knowing whether or not you qualify.
Preparation for Mortgage Application
Employment
Names and addresses for two full years
Gross monthly income
W-2s for two years, if available
Year to date pay stub
Proof of income from rentals, investments, etc
Proof of retirement, disability or Social Security
Proof of child support or alimony paid/received
If self-employed:
Two years Federal Income Tax Returns
Current year profit and loss statement
Creditors
Each creditor's name, addresses and type of account
Account numbers for each
Monthly payments and approximate balances
Amounts of child care expenses
Banking
Names and addresses of banking institutions
Account numbers for all accounts
Type of accounts and present balances
Miscellaneous
List of assets in stocks, bonds, and property
Life insurance cash value (documented if used as cash down payment)
If applicant is selling a home, a copy of sales contracts
Social Security numbers for all parties
Veterans - Certificate of Eligibility & DD-214
Cash or check to pay for application fee
Property
Copy of sales agreement
Copy of listing on property
Instructions on how appraiser is to gain entrance
Suggested Lenders
Alison Kadans, alison.kadans@wellsfargo.com
Work: (303) 441-2015
Wells Fargo
2990 17th St. Boulder, CO 80304-3148
Don Sprague, dons@libertyhomeloans.com
Work: 720-890-8900, direct: 720 890 8700
Liberty Home Loans
2687 Northpark 103 Lafayette, CO 80026
Lou Barnes, lbarnes@boulderwest.com
(303) 443-9424
Boulder West
2569 Park Lane, Lafayette, CO 80026
Grant Brewster, grant.brewster@coloradomortgagealliance.com
(303) 202-3070
Colorado Mortgage Alliance, LLC
1707 Cole Blvd. # 101, Golden, CO 80401
Denise Damian, denisedamian@aol.com
Work: (303) 758-3755
Alpha Mortgage
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