YOUR SALARY MUST MEET THE FOLLOWING TWO CONDITIONS:
1. Your gross (pre-taxes) monthly salary must be greater than 33% of the sum of the monthly mortgage and monthly tax payments.
2. Your gross (pre-taxes) monthly salary must be greater than 45% of the sum of the monthly mortgage, monthly tax and other monthly debt payments.
DISCLAIMER: The pre-qualification figures above are based upon conventional program guidelines. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification. If you have less than 20% equity in your home, a monthly mortgage insurance payment may be required.
12 Important Ways to Keep Your Approval and Loan Closing On Track
- Keep your current job to show financial employment stability. Quitting your job, changing jobs or even moving positions within the same employer may affect your approval.
- Spend conservatively and avoid making any large purchases. Significant purchases may determine the amount you will have available for a down payment. The addition of monthly expenses can also result in a shift in your debt-to-income ratio.
- Do not run your own credit report. Multiple credit inquiries can negatively affect your credit score.
- Avoid depositing or withdrawing large amounts of money into or out of your bank accounts. Any large movements in funds will be reviewed and are subject to documentation and examination.
- Your banking history should show stability. Avoid opening, closing or transferring asset accounts during this time.
- Consistently pay your creditors and do not skip payments for credit cards, auto loans, medical bills, utilities, etc. Keep in mind that disputing bills can show up as a questionable item on your credit report.
- Do not open new accounts, largely increase or significantly decrease your credit balances. While completely paying off a large balance on an account or closing unused lines of credit may seem like a positive move, it can have a negative effect on your approval.
- Do not cosign on any other loans while your mortgage is processing. This can dramatically affect your approval even if you are not making any payments.
- Be completely honest and factual when filling out paperwork. These documents will be scrutinized by underwriters.
- Avoid beginning any home improvement projects, specifically those requiring you to take out a loan.
- Wait to put in an offer on a home until your pre-qualification is final.
- Make sure you have a real estate agent when looking at or making an offer on a home.
A quick closing also requires a handful of specific documents.
- Copy of a driver’s license and social security card.
- Copy of the most recent mortgage statements for ALL properties you own.
- Copy of a the homeowner’s insurance declarations page for ALL properties you own (unless this is included on the mortgage statement).
- Copy of the most recent HOA coupon for ALL properties you own (if applicable).
- Most recent pay stubs for last 30 consecutive days.
- W-2 statements for the past three years.
- Complete individual/joint tax returns, including all schedules for the two most recent tax years.
- Copy of bank statements for the most recent two months.
- Any accounts or other obligations that are not found on your credit report such as child support and alimony.
- Copies of lease agreements for any rental properties.
- Please provide a copy of the HUD-1 settlement statement for any properties that were recently sold.
- Homeowner’s insurance contact information.
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|Monthly Debt Expenses [?]
Monthly Debt and Obligations Should Include: