Buying a Home in Shreveport Bossier: How To Get Pre-Approved for a Mortgage
by Wanda Gertin
on Monday, April 15th, 2019 at 1:28pm.
If you plan on buying a home in Shreveport Bossier, you'll need to show clear proof of your ability to do so. This means showing that you possess the qualifications to take charge of a house and pay what you owe in a responsible and timely manner. One of the most effective ways to do so is to get pre-approved for a mortgage so that you can purchase property in the area without any unnecessary restrictions or delays.
Is It Easy To Get Pre-Approved for a Mortgage?
There are several steps that you will need to take in order to quickly get approved as a homeowner. It's easy enough to get pre-approved for a mortgage, provided that you follow several important steps in order to prove that you possess the qualifications necessary to do so. The process will normally consist of the following steps:
You'll Need To Show Proof of Income
The days of "No Verification" loans have long gone the way of the dinosaurs. As a result, you'll now need to show any one of several different forms of documentation that can prove you possess a reliable source of income. These documents can include:
● W-2 statements going back at least the past two years.
● Pay Stubs that show your income, especially your income to date for the year
● Alimony payment documents
● Documents that prove payment from any other source, such as an insurance settlement or inheritance
● At least 2 years' worth of recent tax returns
You'll Need To Show Proof of Assets
When buying a home in Shreveport Bossier, you will need to show that you possess enough assets to safely navigate the down payment and closing costs. If you take out an FHA loan, you'll need to make a down-payment of at least 3.5 percent of the total cost of the home. Conventional home loans will require a down payment of between 10 to 20 percent, depending on what type of loan you qualify for. You can make use of a gift of money from a friend or relative, but you'll need a gift letter to prove that it isn't a loan.
You'll Need To Have Good Credit
To get the lowest interest rate for your loan, you'll need a score of 740 or higher. If your score is below that, you'll need to pay higher interest or additional discount points to get a lower rate. If your score is below 580, you'll need to make a larger down payment. You'll need at least 620 to qualify for an FHA loan.
You'll Need To Show Proof of Employment
The last thing you'll need to prove when buying a home in Shreveport Bossier is proof of employment. The lender will contact your employer to make sure that you are still working for them. If you are self-employed, you'll need to show proof of income. You will also need to show all of the conventional forms of ID, such as your driver's license, Social Security card, etc. You will need to authorize the lender to perform a credit report, so if there are any outstanding issues in this area, you need to be upfront about them in order to get them addressed.
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