A qualification letter comes from the lender. The letter states that the lender agrees to provide a mortgage to you, the homebuyer, under certain conditions. Qualification letters help you set realistic goals while you’re house hunting. Additionally, they can provide you with the same negotiating ability as a cash buyer and enable you to move quickly once you find the perfect home. Should I Get Qualified before searching for a home? Absolutely. If your credit score and finances are already in order prior to your house hunt, the process goes much smoother. The qualification process is simple: Gather your personal financial information such as bank statements, W-2 forms and paycheck stubs, and meet with us. We will will pull your credit report and evaluate your financial documents. With this information, you and the loan officer are able to discuss the best home financing options that will help you achieve your financial and homeownership goals. Once you are qualified, PrimeLending will give you a qualification letter to inform your real estate professional and the seller of the property that you’re a preferred and serious potential buyer. This will give more weight to any offer you extend on a property as well as allow you to relax and enjoy the process of looking for your new home. *All loans subject to credit approval. A qualification is not an approval of credit, and does not signify that underwriting requirements have been met. Conditions and restrictions may apply.

All Borrowers Copies of W-2s and complete tax returns for the past two years Copy of driver’s license for all borrowers Two recent consecutive pay stubs showing year-to-date earnings Complete copy of checking and saving account statements for past two months Complete copy of most recent statement for retirement or investment account(s) Purchase Fully executed copy of sales contract Copy of canceled earnest money (deposit) check or corresponding bank statement when cleared Name, address, and contact information of homeowners insurance agent Refinance Copy of most recent mortgage statement Copy of the note if FHA, VA, or USDA Copy of homeowners insurance declarations page Self-Employed Complete copy of your past two years’ business tax returns Current profit and loss statement and balance sheet Copy of most recent three months business bank statements Other Documents Relocation agreement if move is financed by employer Previous bankruptcy or foreclosure - complete copy of discharge papers Divorce decree if paying or receiving child support and/or maintenance Copy of Social Security or disability award letter or other proof of income and continuance for three years Original certificate of eligibility and copy of DD214 discharge paper Name and address of nearest living relative

When you waive escrows, you take the responsibility of paying your taxes and insurance rather than having them included in your monthly payment. Waiving escrows may add a fee to your closing costs. You can only waive escrows if your loan program allows for this.

The lender requires a home appraisal on most transactions. If the appraiser recommends repairs or if repairs are mentioned in the contract, the lender may require that those repairs be completed before closing. The appraiser then will perform a final inspection to ensure that the repairs were completed.

To find your loan-to-value (LTV) ratio, simply divide your current loan amount by the total value of your home. For example, if your home is worth $220,000 and you owe $160,000, your LTV is 73%.

PITI stands for principal, interest, taxes and insurance. These are the basic components of a monthly mortgage payment if escrows (the taxes and insurance part) are being included.