Sonoma County Home Loans
PREQUALIFY
The pre-qualification process with Sonoma County Home Loans gives you a home buying budget based on verbal information you give your loan broker. Lenders will allow up to almost half of your qualifying gross monthly income to go to all debt obligations. By comparing your income and your current debt obligations, a broker can tell you how much mortgage you may be approved for. This calculation will include the estimated monthly obligations of the new mortgage along with monthly taxes, property insurance and any mortgage insurance and/or homeowners' association dues.
Pre-qualifications are for your own knowledge, but to make an offer on a home, a buyer requires a more detailed pre-approval.
PREAPPROVAL
Getting pre-approved for financing is the step to take BEFORE talking to a Realtor. The pre-approval process allows a loan broker to make a commitment to secure financing on your behalf. The broker will review your financial documents to determine valid income, assets, cash flow, and credit. This is a mandatory step in securing financing, determining the amount of loan, and choosing the loan program and lender. When the pre-approval is complete, the broker will forward a letter of pre-approval to the buyer's Realtor.
Pre-approvals generally take 24 - 48 hours upon receiving the borrower's financial documentation via fax or email.
To process a pre-approval, the borrower will need to submit the following items.
- Loan Application
- Authorization to pull a credit report
- Valid identification
- Last 30 days of pay stubs
- Last 2 years of w-2s, or 1099s if retired or self employed
- Last two years of tax returns
- Last 2 months of all asset accounts (checking, savings, retirement, investments)
- For VA - DD-214 Discharge Papers to order a Certificate of Eligibility
- For refinance - latest mortgage statement, property tax bill and current insurance policy
