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6 Steps to get a Mortgage Pre-approval---NY, NJ, and CT Mortgage Tip

Thursday, December 8, 2016 - Article by: MEL SMITH--LENDER OF THE MONTH - . - Message

1.Ensure that the personal information for yourself and any co-borrower (if applicable) is easily accessible. This involves Social Security numbers, current addresses and employment specifics. Although there are some exceptions, two years of continuous employment is typically desired.

2.Identify your credit score and pull your own credit history beforehand. If you do this before the lender does it enables you to correct any inaccuracies and pay down/off whichever bills you can to improve your credit score.

3.Determine your debt-to-income ratio. Add up your monthly consumer debt payments, incorporating credit cards, student loans and car loans. Divide that by your gross (before taxes and other deductions) monthly income. The result is your DTI ratio. For instance, say all of your monthly debt totals about $2,800, including your estimated monthly mortgage payment. Your income is $8,000 a month. This will make your DTI 35%.

4.Ensure that proof of income is easily obtainable. During a pre-approval interview, you'll be expected to offer your W-2 tax form, 1099s if you have supplementary income sources, and pay stubs. Self-employed applicants will possibly have to offer tax returns for a couple of years.

5.Keep your bank, savings and investment account material handy.

6.Prepare to confirm from where your down payment is originating. If the down payment is from a gift or the sale of an asset, you will need the proper documentation to establish proof.

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