• Don’t change jobs unless it’s in the same industry. Lenders usually will want to see a 30 day paystub from the new employer.
• Self-employment requires 2 year history with income determined from the last 2 years Federal tax return
• Keep your credit score healthy by not applying for new credit cards or loans. Try to keep your outstanding balance less than 50% of the credit limits.
• Make sure you can verify all large deposits to your bank account. Lenders will require a paper trail for all large deposits. 2 months statements are generally required.
• If qualifying with child support or spousal maintenance, provide a copy of the divorce decree to show payment will continue for 3 years. You will also need to provide proof of receipt for the last 6 months.
• Income will need to be verified with paystubs, 2 years W’2 or 1099, and 2 years Federal Tax return
• Make all payments on time as late payments will lower your credit score.
• Discuss down payment requirements with your mortgage lender. Depending on your loan, you will need a minimum of 3.0% to 5.0% for a down payment. Many loan programs allow for gifts from a relative.
Remember you can always contact Cathy Robin if you have any questions about the preapproval process. She will make sure you are in the best financial shape possible to stat your new home purchase!