Private mortgage insurance (PMI) can be an expensive requirement for your home loan, as it adds more to your monthly payment costs. This is a safeguard that your lender will take out to cover a portion of the amount you borrowed in case you default. Up Next: P.I.T.I.: Understanding The Parts Of Your Mortgage Payment […]
Getting Pre-Approved for a Mortgage in Kansas City
Getting pre-approved for a mortgage in Kansas City is essential to buying a new home. Before you start looking for your dream home, it’s important to be prepared for the pre-approval process. The first steps are to know what a pre-approval letter is, what kind of documents you’ll need to obtain a mortgage, and how to find an exceptional mortgage professional.
What is a Pre-Approval?
Pre-approval proves to real estate agents and sellers that you:
- Can afford the offer you place on a home
- Already have a lender supporting you
- Are serious about buying a home
Pre-approval letters can also give you a competitive advantage over other prospective homebuyers. In addition to helping you understand exactly how much home or land you can reasonably afford based on your personal information, a pre-approval letter gauges the amount of cash you will need for a down payment.
What Kinds of Documents Will You Need?
Obtaining a mortgage in Kansas City will require paperwork, but gathering the records can be easy and manageable if you know what is expected from you ahead of time.
Your loan officer will take a detailed look at your employment record, credit history, and financial assets and liabilities. Below is a list of some documents your loan officer will ask for when approving you for a mortgage in Kansas City.
- Valid driver’s license
- Secondary identification, such as a passport or social security card
- Most recent paystubs for the past two months
- W-2 forms from your employer for the last two years to verify employment and earnings history
- Signed federal tax returns for the past two years
- Most recent bank and asset statements from the past two months
- Divorce decree, if applicable
- Name and phone number of your landlord, if you are currently renting a home
- Credit report
By having these various documents ahead of time, you can significantly reduce the time spent on procuring a mortgage in Kansas City.
How Do You Find an Exceptional Mortgage Professional?
A simple way to make the home buying process easier is to find an experienced loan officer you can trust. Before working with a mortgage professional, it is a good idea to check your candidates’:
- Online reviews
- Customer testimonials
By performing a basic background check on your future loan officer, you ensure that you are working with someone who is reputable and honest. Your loan officer will be the person who guides you through the entire home loan process.