How do I start the loan process?
Your Castle Real Estate works with about 5,000 clients per year and quite a few of them are first time home buyers. Two of the most commonly asked questions are: “What do I need to start the loan process?” and “What sort of documentation do I need?”
Our founder, Lon Welsh, sat down with Joe Massey of Castle & Cooke mortgage to explore this topic. To start the loan process, reach out to a mortgage lender at Castle & Cooke. They will have a conversation with you over the phone and ask some personal questions. Where do you live? Where do you work and how long have you worked there? How much money do you make? How much money does your spouse make? What is your social security number? How much money do you have in savings? The answers to these questions will allow them to get a good understanding of where you stand.
Documentation for a quick closing
After determining where you stand, they will ask for some documentation. The items needed for a quick closing are:
- 30 days most recent Pay Stubs
- 2 years most recent Tax Returns and W-2s
- 2 months most recent Bank Statements
- Most recent 401K, IRA, or other Retirement Statements
- Name and phone number of Homeowner’s Ins. Agent
- Name and phone number of Real Estate agent
- Awards Letters for any Social Security, Pension, or Disability Income (if applicable)
- Copy of Sales Contract and Earnest Money Check
- Copies of ID and Social Security Card
- Copy of Divorce Decree (if applicable)
- Copy of Bankruptcy Discharge (if applicable)
Most items are things that people have on hand fairly easily. Once you gather all of the information, Castle & Cooke will review it, complete underwriting on your loan, and give you a preapproval letter same day. This preapproval letter will allow you to get out there and start looking for homes. It is imperative to have a preapproval letter. The preapproval letter will be your golden ticket when you are making an offer. It shows that you as a buyer are fully preapproved and fully vetted. It is evidence that you can qualify for this new loan. This will really help you out in a competitive situation, which is often the case in the Denver market.