What information is needed for a good prequalification?  by Pat Ryan

A lot of mortgage officers only do a very quick review of a scenario before issuing a prequalification letter.  

What to look for in a prequalification...

  • Credit check.  The loan officer should review the buyers credit history and scores. If they haven't looked at credit there can be some surprises that may cause problems down the road.  

  • Income.  A most recent paystub and W-2 need to be examined to give an accurate income amount.  Many buyers/borrowers fall into some common traps when they try to figure out their own income.  The most commons ones are related to the use of overtime and self-employment income.  

  • Assets or downpayment.  Buyers should have the bulk of their assets in the bank right now (and it should have been there for a couple of months).  If they're using gift money, it's no problem if it's not in the bank but it will have to be documented.

A good prequalification will state that the lender has completed a preliminary check of credit, income and assets.  No prequalification or pre-approval is an absolute guarantee that the deal will close since the property has conditions to meet to (appraisal and title), but you're halfway there!

Ryan Mortgage

> Prepare the Buyer
Encourage your buyers to have a full prequalification which would include having the loan officer check credit and review a recent paystub and bank statement.

> Different lenders
One advantage of using a mortgage broker is that if we run into issues with a particular buyer we have the ability to place them in programs better suited to their situation.


> Rates
Help your buyers find a better rate.  Banks are rather inflexible in regards to rates.  You can help save your client money every month by helping direct them to a broker that will find them a better rate.

Typically our rates are 1/8% to 1/4% better than the local banks every day.