The mortgage industry has gone through a lot of changes lately and the effects are evident in Orange County Real Estate. During the boom years Orange County was at the forefront of overly aggressive mortgage approvals, and why not Orange County homes were appreciating at 20% or more a year, what could have gone wrong? Well now that we know what could go wrong mortgages are now tougher to get here in Orange County.
For most buyers everything begins with the pre-approval process. This will tell you if you can get a loan and how much you can spend. While requirements will vary from lender to lender the below check list is pretty much what we are seeing our buyers of Orange County real estate having to provide.
ORANGE COUNTY REAL ESTATE MORTGAGE PRE-APPROVAL CHECKLIST
1) Addresses – past two years, including the name and address of any past landlords
2) Employers – name and address of any employer over the past two years
3) Paystubs – recent showing year to date earnings
4) W2s – from the past two years
5) Self employed – business and personal tax returns for past two years, current P&L and balance sheet
6) Bank Statements – for the past two months for all accounts for all borrowers
7) Source of funds accounts – past two months statement from any accounts you plan on using as your down payment
8) List of any monthly debts not listed on your credit report – for example if you just bought a car and the creditor isn’t on your report, include payment amount and monthly payment (you want to let the lender know to expect these to show up on your credit report before escrow closes so they are approving you with all the facts)
9) Information on any real estate you already own – address, market value, lender’s name and address, balance, monthly payment and loan account number
10) Explanation of facts – if there is anything that needs to be explained (like a past bankruptcy, foreclosure, late payments, gap in employment, assets not listed etc.) here is your chance to let the lender know why they are seeing what they are seeing. In Orange County real estate we often see mortgage brokers use this information to decide where to take a loan and how to pitch it to the mortgage provider.
Even with all the changes and regulations there is still a loan for most people looking to buy Orange County real estate. Use this as a basic guide and review everything yourself to see how it looks, then when your ready feel free to contact me and I will gladly go over things with you and introduce you to the right mortgage provider for you particular situation. As always if you have any questions feel free to let me know.