How should you approach lenders for preapproval?

Question

I plan on talking to some of the local credit unions, small banks and mortgage brokers in the area prior to seriously finding my first deal(s). Before I go in though I would like to know how best to present myself and what information I should take in with me to increase my chances of success. The types of loans I will primarily be asking about are FHA and portfolio loans.

Angelo Behar · Answer

Check out the code to the loan safe. Its awesome blog that explains everything you'll need.

Mason V. · Answer

W2 for the time being.

Jon Sheffield · Answer

Mason V.

It all depends on what you are trying to do as well if you getting pre-qualified for just one property it will be fairly standard when you meet with them. I am currently getting pre-qualified for an FHA loan the loan officer asked me for were:

1.) Online application to review credit report

2)Most recent 3 paystubs.

3)2011, 2012, and 2013 W2’s, 1099’s, and/or K-1’s.

4)2011. 2012 and 2013 Federal Tax Returns (all pages/all schedules).

5)Most recent 60 days (Nov/Dec) Bank Statements for all your assets (checking, savings, retirement, ect.).

6)Copy of your driver’s license.

I think that is fairly standard there might be some other things but having that with you will get you started.

So far as the portfolio loan I don't have much experience with that, although I believe the loan is less about you and more about the expected performance of the property. So a big part of obtaining the loan including the standard documentation I'm sure you will need to have a nice packet of information documenting location, home price, rents in the area, prospective repairs after purchase etc. But you can always just can call ask what they need for a pre-qualification no shame in that.

Shaun Weekes · Answer

Mason,

You'll need 2013 & 2012 W2's and 1040's (all schedules)

Social Security and or Pension award letters detailing monthly award (if applicable)

30 days of pay stubs (most recent)

2 months on bank statements (most recent)

401K, IRA or any reserves that you might (Loan officer might not need this but provide it)

DL and SSC copies (front and back copies)

Mortgage statements, tax bills, Homeowners insurance and HOA bill (for all Real Estate owned)

Complete divorce decree and or BK discharge paperwork (In case you have child support and to verify the actual discharge date)

This is a great start and depending on your situation more might be requested.

I hope this helps and have a good one.

Mason V. · Answer

thank you all very much.

Shaun Weekes · Answer

Hello Mason,

Are you self employed or a w2 wage earner?

Jeff Trevarthen · Answer

Check out this blog post I wrote a couple of weeks back: http://www.biggerpockets.com/renewsblog/2014/12/09...

You can also figure out what documentation you'll need here: http://www.biggerpockets.com/renewsblog/2014/12/18...

Hope that helps.

Jeff

How should you approach lenders for preapproval?

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