https://youtu.be/wRb2qK0RkDU There is no set definition about what is considered pre-qualified and what is…
All the stories you have heard about a home loan are true…
Well a lot of them. It is a complete, and sometimes frustrating, audit of your finances that continues right up to the close date. We will provide you with expert concierge service throughout the home buying process, but here are some things to know so you can help it go smoothly.
I am a local mortgage broker serving Omaha, Papillion, La Vista, Bellevue, and all of eastern Nebraska. If you have questions on the Omaha housing market I’m happy to have a conversation with you.
We verify your income before we issue a pre-approval letter. That is a review of your base income, any overtime or bonus, and, if self-employed, a complete review of your last two years’ tax returns. And we will do a final verification of employment a day or two before closing. We have had buyers change jobs in the middle of the loan and not tell us because they thought we had already verified employment. That is a big no-no. Make sure to keep your employment the same throughout the loan. If something is going to change we need to know about it as soon as possible so we can make adjustments early.
We do a complete tri-merge credit report. That is a hard pull of all three credit bureaus. We will do a complete review before issuing a pre-approval letter. AND we will do a final soft pull right before closing to make sure you have not taken on any new debt or opened a new account. This can delay or decline your loan. It is important you not open or takes on new debt until we have closed on your loan.
We are going to do a full review of the last 60 days of your asset statements. The Patriot Act requires that any large non-payroll deposits be explained and documented. If you got a pile of cash from your parents do not deposit it. I cannot document cash and if I can’t document it I cannot use it. The definition of a large deposit used to be vague, but it is generally considered half your monthly gross income (an underwriter can ask for documentation of lower amounts in certain situations). We admit this is invasive and a bit violating of your privacy, but the Patriot Act does not allow wiggle room on this. If a large deposit traces back to an account with more large deposits we can get in a “rabbit hole” of verifying more deposits. It is important we go through all these deposits as early as possible.
Check your driver’s license. If it is expired or expiring before close make sure to go and update it. The title will require a valid license at close.
Other useful links
- How to improve your credit
- The 20% down rule on conventional
- What is Escrow?
- How is income calculated?
- Why your assets matter
- Mortgage Calculator
- Is Credit Karma accurate?
- FHA vs Conventional, which is better?