Buying a Jacksonville, Florida house? For home purchasers, having pre-approved is an essential step. The two key advantages of pre-approval are that it encourages consumers to shop in a known price range, saving time and effort, and it gives them power to bargain because they will be treated as serious consumers. There is still some uncertainty about exactly what it means and what documents are needed, as relevant as pre-approval is. We give this thorough look at the documentation you need for pre-approval when purchasing a house in Jacksonville, Florida to help dispel some of the uncertainty.

Stages of Mortgage Lending

But first, before we get into the pre-approval required specific documents, let 's look at the stages of the mortgage process to gain a better understanding of why the documents are needed, as well as where and how pre-approval fits into the Jacksonville, Florida home buying process. Typical phases, often involving several of the same records, are:

PRE-APPROVAL

In this first step, to decide whether you can apply for a loan and to decide how much you can borrow, the lender analyses your financial condition.

UNDERWRITING

To make sure that you and the property in question meet all applicable criteria and standards, the underwriter reviews the loan application and supporting documentation.

CONDITIONAL MORTGAGE APPROVAL

This is the penultimate step in which, in order to give the "clear to close" go-ahead, the underwriter demands additional documentation and information.

CLOSING

The prepared and checked papers are finalized and signed in this final phase of buying a house in Jacksonville, Florida, money changes hands, and the transaction is finalized.

Documents Needed for Pre-Approval

As a first step towards purchasing a house in Jacksonville, Florida, the most common documents necessary for pre-approval are:

PROOF OF SOCIAL SECURITY NUMBER

In order to verify identification, all purchasers would need to have a Social Security card (or other appropriate evidence) on the mortgage loan. Alternative facts may include tax papers and other official records showing the SSN of the borrowers.

RECORD OF EMPLOYMENT

Usually, along with employer records, a lender would ask for a record of your past two years of jobs.

PROOF OF INCOME

And, of course, you would have to show that you currently have sales in order to get pre-approved for buying a house in Jacksonville, Florida. Usually, the trick will be performed with the two most recent pay stubs (or copies of the electronic equivalent).

TAX DOCUMENTS

For pre-approval, the mortgage lender for the last two years will almost always want to see W-2s and tax returns.

RESIDENCY INFORMATION

You will need to provide details on and check where you have been living for the past two or so years.

BANKING INFORMATION

Pre-approval of a mortgage for the purchase of a house in Jacksonville, Florida would also mean having (obviously) information about how much money you have in the bank. The primary aim of this is to show that you have enough funds to cover such items as down payment and closing costs.

CREDIT/DEBT INFORMATION

Lenders may also want to inquire about any debt you have outstanding, such as credit cards, car loans, and student loans.

MONTHLY PAYMENTS

Some lenders will also want to know what you have to pay per month and how much. This will include recurring expenditures including purchases by credit card, rent, and purchases for student loans.

"A few other special case documents that you will have to submit while purchasing a house in Jacksonville, Florida are: 1)" gift letters "from relatives or friends who wish to provide financial assistance with expenditures such as closing costs and 2 ) self-employment documents (if applicable) such as declarations of profit and loss, balance sheets, and tax statements and/or 1099s.

Talk to Your Local Agent

The most popular documents lenders need are the pre-approval documents mentioned above. Depending on the lender, the form of loan, and the town or state, there may be some. It can be daunting and complicated procedures for both pre-approval and buying a house in Jacksonville, Florida. That's why you should chat with your real estate agent: to avoid making any errors or expensive errors. Our seasoned agents are eager to assist.

Author's Bio: 

William Pek
I'm here to assist reader's about how to buy or sell home. I'm Professional author about home buying or selling. I have 25 year's experience in this field.