Mortgage Prequalification-What You Need for Mortgage Prequalification.

The mortgage prequalification process requires several key documents in order to be completed.  First, every applicant needs to present the previous two years W-2 forms.  Additionally, every applicant must also present the last months worth of paystubs.  Additionally, every mortgage prequalification applicant must provide a phone number to the human resources department at their primary source of employment.  Many lenders will also require applicants to present a list of retirement assets in addition to the previously mentioned documents.

Mortgage Prequalification- The Process.

In the past, this portion of the process would require that the individual applying present themselves to the processor and sign paperwork and present documentation in person.  Luckily, mortgage prequalification has progresses to the point that applicants can now simply send documentation in via certified email or fax.  Also, documents may also be signed at the applicant’s convenience.

Mortgage Prequalification- Document Processing.

At this stage of the mortgage prequalification process reviewers cover all aspects of the applicant’s paperwork and financial status.  The lender will decide how much of a loan, and at what terms, makes the most sense for the applicant on an individual basis.  Though the terms may not be what the applicant was expecting, or what they believe they are qualified to receive, but it is what the lending institution has decided is best.

This stage of the process can take up to several days.  Documentation is being requested from variety of sources, and often times, the controlling institutions may require several days in order to process the requests and obtain the requested documentation.  Often times employment must be verified and banking institutions must be contacted in order to verify the amount of funds currently in operation, as well as the source of the funds.

Mortgage Prequalification-Patience.

Regardless of the outcome, mortgage prequalification is an often taxing and stressful situation.  Applicants are cautioned against becoming overly stressed and worked up during the course of events.