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How to get pre-approved for a mortgage in Oregon - CCCU

 Monday, June 24    CCCU
How to get pre-approved for a mortgage in Oregon - CCCU

5 Steps for getting a mortgage pre-approval in Oregon


If you’re new to residential real estate, you might be wondering about the mortgage pre-approval process in Oregon. Take these steps to get to get pre-approved for a home loan in Portland and learn how Consolidated Community Credit Union can help you buy a home in the PDX Metro area.

Purchasing a home is a significant life event, especially if you’re a first-time homebuyer. While visiting open houses and browsing listings online can get you excited about purchasing a house in Portland, it’s important to keep in mind this process is relatively complicated and shouldn’t be taken lightly. To make home buying easier, we’re covering everything you need to know about getting a mortgage pre-approval in Oregon.
 

What's the difference between being pre-qualified and pre-approved?


First, it’s important to know the difference between being pre-qualified and pre-approved for a mortgage. A mortgage pre-qualification is an estimate indicating what you can afford in terms of buying a home. When you are pre-approved for a mortgage, it means your lender has reviewed your income, savings, credit, and all the documentation needed to approve the loan. Ready to get started?


5 Steps for getting a mortgage pre-approval in Oregon


1. Show your good credit


The first thing you’ll need in order to get pre-approved for a mortgage is good credit. You don’t need to have perfect credit to get pre-approved for a loan. However, good credit history and a score of at least 640 or higher will show your lender that your lines of credit are in good standing and that you can make payments on your loans.

Typically, the higher your credit score, the lower the interest rate your loan will have. Additionally, if your credit is not at a satisfactory level, a lender may require a larger down payment.
 

2. Prove your income


The next step in getting a mortgage pre-approval letter in Oregon is to prove your income. Most lenders like CCCU will request W-2 forms and tax returns from the previous two years, along with pay stubs and bank statements. If you have additional income from bonuses, gifts, child support, or alimony, you’ll need to prove that as well.
 

3. Verify your employment


To pre-approved for a mortgage, the lender will also need to verify your employment. In addition to pay stubs and tax returns, they will likely contact your employer to confirm your salary and your current employment status. Generally, mortgage companies want to see that you’ve been working at a company for at least two years, but if you recently changed careers, they may accept confirmation from your employer that you’re in a permanent position. Lenders may also contact your previous employers.

Employment verification tells a mortgage company you have stable work with the income to make long-term mortgage payments.


4. Prove your assets


The next step in the mortgage pre-approval process is proving your assets. This includes balances from your checking and savings accounts, stocks, bonds, mutual funds, and retirement accounts. Proving your financial assets shows your lender you have the money for a down payment, and enough for you to make your first mortgage payments. Your assets will also provide a lender with an accurate depiction of your debt-to-income ratio.


5. Requests for additional documentation during the pre-approval process


Lastly, be prepared for your mortgage company to request additional documentation and information during the pre-approval process. You’ll need to provide your social security number, a copy of your driver’s license, proof of your renting history, and other debts and expenses you have as verification.

We provide same day mortgage pre-approvals at CCCU, but it can take longer depending on several factors. Having all of your pay history, bank statements, a strong credit score and your paperwork on hand will make the approval process much quicker.

Set yourself up for success to make the mortgage pre-approval process go as smoothly as possible. Stay up-to-date on payments for all lines of credit and monthly dues, maintain your savings account, and be prepared to provide all requested documentation and information to your lender.
 
Once you’re pre-approved for your loan, you can start putting in offers on homes that you find on your house hunt. There are a few more steps to complete before the Final mortgage approval will happen but you’re well on your way to owning the Portland  house of your dreams! Contact us today to get started on your Portland home loan pre-approval process.

Happy house hunting!















 


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