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5 Things You Need to Get Approved for a Home Mortgage Loan in Newport Beach, CA

When you're ready to buy your home in Newport Beach, it's natural to be more excited by the latest open house than by the process of getting approved for a home mortgage loan. But to get into your dream home, getting a loan you can afford is crucial. You can get a home mortgage loan quickly, and especially if you've lined up everything you need to get approved.

5 Things You Need to Get Approved for a Home Mortgage Loan


Proof of Your Assets

A mortgage lender will consider whatever assets you can bring to the table. You'll need to have proof that you've got the finances to cover the down payment and closing costs. It's also important to show lenders that you have enough cash reserves in hand that you can weather a financial downturn and still make payments on your loan.

Every loan is different, so your down payment amount will depend on the loan you're seeking. If you can put down at least 20% of the total cost up front, you won't have to buy private mortgage insurance, which will save you a bundle. Whatever down payment you can make, just remember that the bigger the down payment, the better your loan terms will be.

Proof of Your Income

You'll need to have W-2 statements going back two years to prove your income level and the fact that you're steadily employed. You'll also need to gather your pay stubs, tax returns from the last two years, and proof of any other income you're currently bringing in, such as alimony or inheritance.

If you're self-employed, be aware that in most cases you'll need five years of financial documents rather than two. Since you're required to withhold your own taxes as a self-employed person, it's important you show that you manage your finances well and are bringing in steady work.

Proof of Your Employment

Believe it or not, your pay stubs and W-2s aren't enough. You'll also need proof that you're employed at the moment and verification from your employer about your position and salary. If you've just changed jobs, your lender may want to contact your previous employer.

If you're self-employed, you'll need lots of extra documentation. You need to be able to prove your income, prove the nature of your business and the location, demonstrate that there's a demand for what you do, show that your business is financially sound, and convince lenders that you're going to be able to generate enough income to keep paying off your home mortgage loan.

Proof of Your Good Credit

In most cases, you'll need a credit score of at least 620 to qualify for a loan, though there are always exceptions and there are options for those with poor credit. In general, the higher your credit rating, the better terms you can get on your loan. The higher your credit score, the smaller your down payment can be.

Your credit score can make a big difference in your mortgage payments. You could pay nearly 2% more in interest with a credit score of 620 than a credit score of 760, so it's worth it to bring your score up before seeking a loan if you're able. Be sure to check your credit rating for any mistakes and dispute them immediately if you find anything that's not correct.

Other Miscellaneous Documents

To get your loan, you'll need a driver's license, passport, or other valid form of ID. You'll also need to provide your Social Security number and your signature so the lender can run a credit check. Be aware that each individual lender will have their own process and may ask for other paperwork, so be sure to check before you come in so everything goes as quickly as possible.

Get Your Loan Approved Quickly

Getting your home loan doesn't have to be overwhelming. Call Justin Purpero today. We're ready to help you through the process and get you into your dream home as fast as possible.

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