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quick tips of the day
What's going on? What's going on? What's going on? Alright. Welcome to the PropertyPro podcast.
Speaker 1:Once again, I'm Edward, your host for today. You could have been anywhere else, but you choose to come to listen to me. So therefore, I'm thankful and grateful for you. So subject matter is today we we must gonna be breaking down what is the piece of documents. Like I said, the piece of documents from a to z, what you will need in the other to requalify for a mortgage, especially if for if you're a first time buyer, especially if you're actually using the traditional, lender shots as, you know, TD Bank, PNC, Wells Fargo, or, I mean, you know, I call that credit union, all that good stuff that I would consider as a traditional bank, your local bank.
Speaker 1:Okay. Just think about it that way. And as you you guys actually already know that you can't do anything if you actually live in in today's society without money. So you definitely need to prove proof of income. Right?
Speaker 1:What do I mean? Right? Don't forget. You are getting rate. You are listening.
Speaker 1:You need to listen carefully because this is document that you actually need. Alright? You need to provide your most to usually the last month or the 30th day, right, of your most recent pay stub. Right? You need to provide that.
Speaker 1:Okay? Your last 2 of your pay stub or the most recent 30th day. You need that. You need copy of that, those documents. Alright?
Speaker 1:You're gonna need your federal tax return last 2 years, w 2 or 1099 form. Last 2 last 2 years, if you're self employed, you definitely need to provide those 10.99 sheets if you are keeping if you are filing your your, keeping a record. If you are doing things the right way, you should have your 1099 form. If you are applying, if you're applying for, if you are doing things the right way the last 2 2 years, that should not be a problem getting these documents. Alright?
Speaker 1:Self Employers, I'm talking to you. And of course you, in addition, if you have all the, some type, some type of form of income, some type of side hustle at, you know, if you drive, a, I don't know, Uber, whatever it is, cutting the grass that could consider as a side hustle if you actually bring him in any extra income on the side. Prove it. Show the bank statement. So, hey, listen.
Speaker 1:I definitely make more money that would definitely help you to prequalify, for a bit a better and, larger amount of, mortgage. Alright? And of course, if you have some type of, such as child support you're actually receiving, right, that is considered extra income. So provide that. If you have some type of proof of assets, bank statement, the last 3 months, yes, they're gonna ask you the last 3 months for that bank statement.
Speaker 1:So don't forget that you all gained yourself prequalify qualified to fall mortgage. You're gonna go to these people and be like, Hey, listen, I need a, I need some money. I need a 100, $200,000, $300,000 right. And, to buy a house. Well, they gonna say, well, okay.
Speaker 1:Well, we gone we gonna help you out, but we need to know that, let's let's get these paperwork first. Let's get these paperwork first so we could definitely prequalify you. Alright? You need to provide those last 2, 3, month of, bank statement, investment account statement, stock, bond, or other other investment that you actually, you know, involve in. Retirement account statement, 401.
Speaker 1:K. R a, essential. Anything that you have, anything, any income producing that you feel like that would definitely, help you to get prequalification, for that, you know, dream homes you are looking for. Of course, you definitely need to have a decent credit score. What do I mean by that?
Speaker 1:Alright. Lenders will definitely run a credit check on you. Alright? What is the what what is majority of the time of, a credit score that you'll need to, prequalify for conventional? At least, you need at least a 620 or higher is often required for conventional loans.
Speaker 1:Right? But some type of loan some loans, allowed for a low credit score such as an FHA, a VA. We could definitely break that down, later on. Alright? And, definitely, the lender will need employment verification.
Speaker 1:Well, at which I already provide my bank statement, my, last 2 pay stub, my w two 1099. That should be enough. Well, fair enough. You definitely need to provide some type of, extra documents such as, you know, government ID, driver license, passport, you know, old state ID, social security for a credit check. They need to verify who you are.
Speaker 1:They don't know you. It's not personal. Just remember that. They will be asking a lot of question because they gonna lend that a month of large sum of money to, to you. They know they need to know who you are.
Speaker 1:They need to know if they actually can trust you. Right? So that information, list of the current debts, including credit card, debt, student loans, car loans, and other mortgages, monthly debt payment in total debt amount. You're gonna need to know all these things. Why?
Speaker 1:Because you're getting prequalify. They need to know, well, you said you make a $100,000 ball then. Right? And to this society today's society. Just joking.
Speaker 1:Alright. They need to know these if you have student loans. Right? They need to know how what's your how much credits, what how bad are you? How good are you managing, your credit?
Speaker 1:You know, that Macy's credit, that Chase credit card. You need to know, you know, that, you know, every Saturday you're in the mall, they need to know how do you manage that money? How do you manage your debt? How do you manage that credit card? Right?
Speaker 1:If you're a good spanner, bad spanner, right, you could be making a lot of money, but you're not keeping it. You're not saving a lot. So they need to know, can we trust these person? So you dig on need a lease of your debts and, your credit card student loans. They need to need all that.
Speaker 1:You like, yeah. Oh my god. That's too well, you know, get your stuff together if you have if you're a big spinner. Stop spending. Okay?
Speaker 1:So you all need all these type of information. And of course, you if you are getting ready to, when are you, I should say, whenever you'd be, you're all ready to, you know, shop and find, you need to, to know an estimate of the down payment, the amount of money you plan to use as a down payment on a property, which can affect your loan option and interest rate. Alright? Of course, most of you guys already know the bigger for, of down payment you actually can put down the better it is. Right?
Speaker 1:The better that you all be qualified. But to say this, this should not stop you or stop anyone from gain, a down payment because there is grants. You could get grants up to 4,000, 5000 up to, 13, you know, and more. Okay? There's different option as long as you actually found the right paperwork.
Speaker 1:So as far as I'm concerned, you definitely will need some type of money. What type of money? You definitely need some type of earnest deposit, at least, $2,000 15, 1500 to hold the property when whenever you get ready to make that, offer, you will need that, those, at least some type of money to put down. Right? I'll say the minimum, depending on what type of property you're trying to buy, at least have, at least in the you're saving at night, you're saving account at least 10 to $15,000.
Speaker 1:That is good thing to show the lender saying, hey, listen. I have some type of money in the bank. I've been saving, you know, so they could actually work with you. Alright? And, of course, to continue with the bank, definitely need to know, your residential history, addresses where you have lived in the past 2 years.
Speaker 1:Some lender, depending on the lenders, might ask for, even more years up to 5 years. Right? Let you yes. They actually will contact you past the landlord if you have been a tenant. Right?
Speaker 1:If you have been a tenant, there will be contacting, Edwidge. If Edwidge, your landlord, was your landlord, they'd be like, Edwidge, who was this guy? Who was this girl? Did she was she clean? Well, I'm not gonna not clean, but, hey, did she make a payment on time?
Speaker 1:You know, to just verify those payment, with your rental payment, you know, again, you're getting pre qualified. And to say all this, it is bank on the bank. Okay. Some banks don't go to that a month of length. All right.
Speaker 1:They just need just proof of income, those type of stuff. Right? And of course, it depends what type of loans you're applying to. And, the loan type, property information, if you know the type of mortgage you are seeking, conventional FHA VA. Hey, Ed, which one is a VA?
Speaker 1:A veteran, a veteran loan. Right? Most, most, most people, if all, yes, all people who actually serve in the military, that's the people that actually qualify for a VA loan. Alright. Conventional.
Speaker 1:I think I'll break down what is a conventional or one of my last 2 podcasts. Alright. Go back and listen to my old, podcast if you've been listening. And of course they're going to need details about the property you intend to purchase. If that pro if, if that information is available, Hey, Remember, the specific requirement can be very by lender and loan type.
Speaker 1:So it is a good idea to check with potential lenders about the particular requirement and process for the pre qualification. So it is good to shop off at least for 3 bank. Alright. Back to back. Don't wait one month for another month, then go for to a to a lender.
Speaker 1:Make sure you do this within a same week. Alright? So that way, credit bureau know what exactly you're doing. Your so your credit score doesn't take too much of a hit. And again, this is Edwidge.
Speaker 1:I'm always grateful. Thankful for you to for listening to the Pro Property Pro podcast. You could have been anywhere else what you choose to turn in. So therefore, I'm grateful and thankful for you. Just remember, effort is wealth.
Speaker 1:Make sure you take care of yourself, good people. Peace.