Expediting a Pre-Qualification
Although Guardian Mortgage Loan Originators are here to guide customers every step of the way, we know that sometimes buyers feel more comfortable in speaking to you, their real estate agent, about the mortgage process first. As your lending partner, we’ve prepared the following to assist in answering questions, but please know that our MLOs are available to help as well. In a hot market where minutes matter, these resources can help make sure the client is on the fastest track to having an offer that’s accepted and closed in a timely manner.
A pre-qualification requires proof of self-reported information, so Guardian Mortgage evaluates the borrower’s credit history, calculates housing and debt ratios, verifies income, and confirms the down payment and cash needed to close. The following documents are typically requested, but may vary based on borrower:
- Most recent 30 days of pay stubs for each borrower that reflect year-to-date earnings
- Most recent 60 days of bank statements from liquid asset accounts and retirement accounts
- W2s for each borrower covering the previous two years
- Letters to provide documentation (if gift funds will be utilized)
- Photo IDs
- If borrower holds a 25% ownership position with employer, we consider the borrower self-employed.
- All pages and all schedules of the company tax returns for the last two years
- A current Profit and Loss Statement
- A Balance Sheet
- Two most recent personal tax returns filed with the IRS
We may also require:
- All pages of a recorded divorce decree
- A copy of the extension form if the most recent tax return has received an extension
- All pages of any lease agreement on investment properties or last year tax return
- A credit explanation letter for derogatory credit items
Take a look at our helpful checklists for easy-to-print documents that can be useful for borrowers.
What to expect from the MLO
Guardian Mortgage Loan Originators (MLOs) provide feedback after evaluating the borrower’s loan application. The MLO will communicate information such as:
- Credit score
- If PMI will be required
- How much the client is qualified to borrow
(Pro Tip: It is possible to ask for a lower qualified amount letter, which can help in negotiating a lower sales price)
- Available loan options
- Down payment percentage for each option
- Rate for each option
- Benefits / loan comparison
- Expected monthly payment amount
- Closing costs / settlement fee (loan estimate)
A pre-qualification improves the odds of getting to the closing table faster — an outcome that pleases both buyers and sellers. Guardian Mortgage strives to provide insight and assistance to our valued real estate partners as we both help clients move through the loan process. Communication is key so, as always, please contact one of our helpful Loan Originators if you ever have any questions.