How to Get Pre Qualification Loan Paperwork From a Bank
- 1). Before talking about how to get the pre qualification letter from the bank, let's first distinguish the difference between pre qualification loan paperwork and pre approval loan paperwork. The pre qualification letter from a bank is free while banks charge for a pre approval. The real difference is that a pre qualification does not actually go through the bank and is determined by the loan officer himself, everything is an estimate. The pre approval loan paperwork actually goes through the bank (bank check or verify all your provided information) and carries more weight than a pre qualification when submitting for an offer.
- 2). So, which one should you get? If you just started looking for homes, pre qualification loan paperwork is good enough. The process of finding the right home is very long; the pre approval is only good for two months. A pre approval is more beneficial because it carries more weight when the bank looks at your offer. When a person starts to submit offers, it is better to get the pre approval from the bank.
- 3). Once you decided that you want the pre qualification, it is better to talk to the bank's loan officer and tell him exactly what you want to do (how much house you want to buy, down payment and etc). To save time, it is better for you to bring needed information with you for the first visit with him. Here is a list of the things that you will need when obtaining pre qualification loan paperwork:
1.last two years tax return (federal only)
2.all W-2 from last two years
3.all account statements (credit card accounts, checking accounts, and saving accounts)
4.three most recent pay stub
5.if there is a promotion, provide the letter of promotion notice
6.CDs, 401K, 457 and all other retirement account statement
7.identification such as driver's licenses - 4). The loan officer uses the above information that you provided him to see if you pre qualify for a loan. He should also explain the terms of the loan, points, and closing costs to you. The pre qualification at the bank that you have an account in is completely free of charge to you.
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