Step 4: Prequalification
Benefits of a Loan
Most people cannot finance property without cash from a bank. Have you heard that interest and taxes on your loan can be deducted from your income taxes? What does that mean? It means that the government pays approximately 30% of your monthly mortgage payments. If your house payment is $1000 that means you are actually only paying $700 after your deduction. These laws are subject to change every year, but to date this has been one of the greatest benefits for obtaining a loan to buy a home.
Required Documents
A loan officer will need all the items below to create a financial portrait and give a loan qualification amount. Then a pre-approval letter can be made which will help you obtain your property. Finally, your agent and loan officer will need to know when you want to move so that they can lock in the lowest interest rate for you.
Please have the following items ready:
- 2 years of W2 forms
- 2 years of income tax statements
- 4 months of pay stubs
- 4 months of bank statements
- your social security number
- your down payment amount currently saved
- your current assets in dollar figures (bonds, IRA, 401K, insurance policy, trust, etc.)
Next, Step 5: Looking for Property
 | © John-Robin Middlebrook. Last updated July 2006.
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