pre qualifying for a mortgage?

do you need to show proof of down payment and closing costs to pre qualify for a mortgage?

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  • 1 decade ago
    Best Answer

    yes, along with ability to pay, and many other things. Had several people that prequalified this past year and still could not get their loans, as things changed in mid search.

  • 1 decade ago

    I have never been asked that when I had been pre qualified in the past but my banker knew me so it might have been different.

    I still think they wont want proof of funds until you write an offer however. The pre qualification letter you get from a lender after they check your credit and employment may have something stating in it that there requirements and qualification for gaining the mortgage is contingent you have funds for down payment.

    Then when you write and offer the seller may want more information in addition to your letter to insure you can close a deal. Lenders will still issue letters without seeing your down payment cause many of them understand the down payments could be coming from your parents or some deal you are about to close elsewhere.

    This all said you should ask the lender if they require the down payment to be proved before pre qual letter is issued?

    Some people keep money in mutual fund accounts and don't want to unnecessarily transfer funds if the real estate offer they are negotiating on falls through. It costs money to transfer funds in many accounts and account balances change daily.

    I would ask the banker what they want to get you your letter of pre qualifications.

    The closing costs are often wrapped into the loan just so you are aware of that. The real money you need is the down payment money. If its going to be a gift from a parent then you will just mension to the bank and it wont be a problem. If the bank wants more info just get the parent gifting you to get them an account balance.

  • It helps when making an offer on a home to send your pre qualify with it. It lets the seller know you are able to purchase and helps them except your offer over people who make an offer with no proof. A heads up on down and closing cost. If you are going to borrow money from family or Friends try and have this money already in your bank account in enough time for it to show on bank statements before you give copies to your lender. Large deposits after the fact can cause red flags to the underwriters on the loan.

  • Anonymous
    1 decade ago

    No you don't need to show proof, but it is in your best behalf to become pre-qualified. When a Realtor or any offer is presented to a seller, the first thing they want to know is can you afford to buy their home? If you have a letter stating you are "Pre-Qualified" for a loan amount up to $200,000 then that's your limit. If your buying a home and have a 195,000 offer and you're in first place, the house could be yours provided it passes the home inspections, title report and don't forget NOT to BUY A CAR or anything else because that effects how much you qualify for. If you are selling your home for $100,000 and have two buyers, one Pre-qualified and one not, which one would you accept? A Pre-qualified letter is not a guarantee, it states just that, you are Pre-qualified provided everything stays in order, highly recommend it!

    Hope that helps

    Source(s): Realtor for many years & answer questions on a web site for Snowbird RV Help
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  • 3 years ago

    A pre-qualification is the place they seem at your numbers.. and have confidence you on your earnings, money owed etc. A pre-approval.. they could pull credit to substantiate all those products. the element is that a credit pulled is sturdy for type of ninety days,and then they could pull credit lower back. you may have the flexibility to apply that score to offer you a concept of the place you stand now. you comprehend in case you have ignored any money or carried out something for the reason that they pulled it to harm it. If no longer, it is going to circulate up somewhat by using the years. It takes 3-5 factors while they pull credit so which you in basic terms ought to tension in case you're borderline (say 640 or so). sturdy success ;)

  • Lisa L
    Lv 6
    1 decade ago

    Usually a prequal is done by phone & is based on verbal info. So, you would be prequalified based on information told. For a preapproval, you would have to furnish paperwork.

    However, there are 100% loans available & the seller could pay closing costs, so you would not need any money.

  • 1 decade ago

    You need: last 3 month bank statements, paycheck stubs for 2-3 month, previous year tax forms.

    Broker will calculate if you are qualify for the loan.

    Good credit score will help too. Good luck and read before you sign any documents (fine printings)

  • 1 decade ago

    Yes, You will also want to have that when you place an offer on the property. Having these facts when presenting your offer will build strength in your offer. When there are offers on the table, its the ones that have the highest ablity to close will be the winning offer.

  • 1 decade ago

    Yes.

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