Qualifications (Borrower & Property)

Pre-qualifying for a home loan costs you nothing.   Pre-qualifying  means that based on what you provide the lender via your application, communication, &/or documentation appears to meet credit approval requirements.  Prequalifying does not mean you have been approved; it just means that it appears you meet the income and credit requirements.  Most realtors will request you prequalify, so they know they have a qualified potential buyer.

Here’s what the lender primarily reviews CREDITWISE in prequalifying:

  • Credit score – You must meet a minimum score for all LONGTERM mortgage loans.  Based on your score, the lender will advise what is the best loan for you.  If there are 2 borrowers, we will use the lower of your 2 middle scores.
  • Credit – In addition to your score, the lender will want explanations for derogatory credit.  If there are unpaid collections, you will sometimes be required to pay these.  If there are any credit inquiries within the last 4 months, the lender will ask you to explain why credit was pulled and whether any loan resulted.
  • Income – Does the person have a job?  Are they self employed and have tax returns to verify income?  Tax returns, W-2s, and paystubs are needed to verify income; self employed persons will need to furnish 2 years’ personal & business tax returns and sometimes a current Profit & Loss Statement.
  • Assets – Does the application show the borrower has money available for down payment and closing costs?  If not, from where will the borrower get their money?  Maybe you are getting a family gift?  Do you need down payment assistance?  Secondary Market Lenders have strict guidelines on the sources of these monies; be sure to ask your lender what is acceptable.

In choosing property, here’s what the lender primarily reviews PROPERTYWISE:

  • Is the property acceptable to investor?  Secondary market lenders do NOT finance single wide mobile homes, and not many finance double wide mobile homes.  Currently, our investor finances only newer double wides that have only been moved once from the factory.
  • Log cabins or metal homes – Since these type homes are becoming more popular and common, financing has become more available.
  • Value of property – Properties must be in good and safe condition.  An appraisal will be ordered to determine the value of the property.  Ideally, the appraisal will appraise for at least the sales price.  If repairs are required by the appraiser, those repairs must be done before the home closes.  Many contracts state whether or not the seller agrees to pay for any repairs.

Your lender strongly encourages pre-qualifying.  Pre-qualifying gives you the confidence you are shopping in the right price range.

Take advantage of the advise your ANB lender has for you.    Or, prequalify today at https://myloan.bankersmortgage.com/l/bwright