Colorado Mortgage

The Qualification letter


So just how does the mortgage process work in order to receive a mortgage. First of will be the qualification. Colorado Mortgage Sometimes called the pre qualification. This is where you will get together with a mortgage professional a see if you can be qualified for a mortgage. A lot of times if its is a new home purchase a Realtor will want you to have whats called a pre qualification letter. This is a letter that is sent to you bu a mortgage professional. This Realtor may not even work with you unless you have one of this letters. The Realtor will need this letter when you make a bid on a house. This is required for the selling Realtor to know that you are qualified to purchase this home. With out this letter the selling Realtor has no idea if you can actually buy the property.
So how does someone get this letter/ They need to prove to the mortgage professional that they can qualify for the loan. Some of the items you are going to prove, is your income. They mortgage broker will need to see at least 2 years of documented income. This will usually be your last 2 year W-2 and a pay stub. What they will be looking to do with this information is to figure out what your monthly income is. The will use your year to date income form your pay stub and go back 24 months. One bonus from this is that most people , when figuring their income just use 2 pay stubs. But there are actually 52 weeks in a year. So you actually show a little more than you would if you used just 2 pay stubs. They will use this income to show how much house you can afford. Try not to push it and just get a house that is in your budget.