What to Know About Pre-Qualifying for Mobile Home Mortgages
Posted on: 13 March 2017
If you have found a mobile home and acreage you like that will fit into your budget, one of the first steps may be to pre-qualify for a land and home package mortgage. You may find a mortgage company that works directly with a mobile home dealer and is willing to put you through their pre-qualification process to see what price range of homes you may be eligible to purchase. If this is the case, there are a few things you should know about that pre-qualification with the mortgage company so you are prepared for a positive outcome
Steps of the Process
There is a misconception that a pre-qualification acceptance and amount means you are guaranteed that amount the form of a loan from the mortgage company. The truth is, there are several more steps in the process in order to get a final amount for approval. The first step is simply to determine if you meet the basic qualifications and, based on that application, what the initial amount for approval is. The next step in the process requires proof of income and several forms in order to determine if the amount you can receive is greater or less than the amount given in the pre-qualification. Once this has been completed, then you can choose the mobile home or land and home package that fits the amount given, make the down payment, and begin the mortgage paperwork to close on the property.
Tax Forms
One of the forms that you will need to provide as proof of income is your tax return. Most people are prepared to show at least the recent tax return, but the mortgage company you choose may ask for three to five of the last tax returns you have. This is to show a basis for a steady income, payment of taxes, and to give a verifiable form of that income to match to bank records. If you do not have these tax forms, you can order previous tax returns from the IRS in the form of a transcript or full return copy. If you know you will want to move forward in the qualification process from your mortgage company, and you are not just testing the waters to see if you could even attempt to be qualified based on your credit, then you will want to order the tax return copies as soon as possible since it can take several weeks to receive your tax return copies in the mail.
Percentage of Down Payment
One of the key aspects of the pre-qualification that most people do not consider is the percentage of the down payment that will be required before you can move from the loan acceptance phase the buying and closing phase with the mortgage company. Most mobile home, land, and home dealers will require a certain percentage of the home cost as a down payment. There is a misconception that this will come out of the loan. This is not true. This down payment must be made out of pocket outside of the restrictions of the mortgage loan.
By keeping these three key aspects of the pre-qualifying process with your mortgage company for a mobile home loan you can better prepare yourself for the process that lies ahead. You can also ensure you have paperwork ready to cut down on the wait time and processing time.
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