The first step in a mortgage pre-approval is providing proof of identity. Your mortgage lender will require a copy of your driver's license or passport and your social security number.
2. Proof of Income.
After you've provided your identification, you'll need to show proof of income. Generally, you will need to provide recent pay stubs, W-2 forms, bank statements, copies of tax returns for the past two years, investment account statements, 1099-forms, etc. Essentially, your mortgage lender is going to want to see verification for every form of income. The bank will want to verify that you have stable, regular income that makes you a low risk for default on your Lake of the Ozarks home loan.
3. Proof of Assets.
In addition to proof of income,your lender is going to need to see proof of any major assets you have. He or she needs to ensure that you have sufficient assets and reserves to handle a down payment and closing costs, as well as enough cash reserves to make payment for a certain period (typically one year).
Be prepared for your Lake of the Ozarks mortgage lender to run your credit report. Your credit score is one of the major determining factors for mortgage approval and the interest rates made available to you. If your credit score is poor or you have excessive debt, you may want to improve those areas first. Lower credit scores may require greater down payments or higher interest rates, and in some cases could result in being denied for a mortgage.
5. Low Debt-to-Income Ratio.
Not only does your lender want to make sure you pay your bills and that you pay them on time, but also that you don't have too many debts. Your lender will determine your debt-to-income ratio, which is also a factor in determining approval, interest rate and the price range of homes you can afford. You need to make sure that your debts aren't too high in comparison to your income, otherwise you will be seen as a higher risk borrower.
If you're currently in the market for purchasing a home at the Lake of the Ozarks, talk with me about getting the pre-approval process started! Give me a call at 573-746-7211 to discuss Lake of the Ozarks home financing options today. I'm here to work with you every step of the way, offering the first-class service you deserve!
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Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
Cell: (573) 216-7258
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.