Applying for a home mortgage is one of the biggest and most important financial steps you will take in your lifetime. The mortgage loan process can seem complex to many, but here at Luminate Home Loans, we want to make sure you feel fully educated as you move through this process. We have a full page dedicated to our process but keep reading to learn more about what all of this means for first-time homebuyers like yourself.
Pre-approval: you’re going to hear this word a lot when you first start your home buying journey. In short, a pre-approval is what happens when an underwriter reviews all of your documentation and determines whether or not you are qualified for a mortgage.
It sounds intimidating, but we promise it’s easy. Once you pre-qualify, you’ll receive your pre-qualification letter, a list of items we’ll need from you, and a loan estimate. Just remember that home loan pre-qualification does not include an analysis of your supporting documentation and is based solely on the information you have provided verbally and/or online for your application.
Getting pre-qualified with Luminate involves supplying us with your overall financial picture, including all debts, credit, income, and assets. We’ll review everything quickly (usually in as little as one or two days), and then give you an estimate of how much you can qualify for. The best part? All of the pre-qualification processes can be done over the phone or online, and there’s no cost involved!
To pre-qualify, we’ll need your W2 statements and all pages of your 1040 Federal Tax Returns from the last two years. Also, if you’re a business owner we’ll need your tax returns and K1s.
We will need copies of your two most recent paystubs, and the last two months of your bank asset statements (checking, savings, money market, retirement, etc.).
A copy of your driver’s license or passport will be needed to confirm your legal identity.
In some cases, we’ll need other types of documentation from you as well. That may include an offer letter for employment, school transcripts, social security or pension award letters, a divorce decree, bankruptcy papers, or short sale documentation.
Once we review and validate all of the documentation you supplied us, we’ll provide you with an official pre-approval letter up to a specified amount. Going through the pre-approval process puts you—a first-time homebuyer—in the strongest position possible against the competition when making offers on homes. In our intense buyers’ market, sellers are only considering serious buyers who have done their due diligence and are fully pre-approved.
As you go through the pre-approval and the home loan process, it’s important to remember a few basic tips. For example, you’ll want to continue to effectively manage your credit while going through the mortgage loan process because changes could affect financing. Also, if you change jobs or any other large life events happen, you’ll want to inform us right away.
—Mark
—Kristin
—Jonathan
That’s okay—because our team is here to help guide you every step of the way. We don’t want you to feel left out in the dark, but instead to have complete clarity and transparency throughout your entire loan process.
Here at Luminate Home Loans, we truly believe in our mission and core values. We focus on people like you because we understand that character does count. We stay humble and work hard so that the lending process stays approachable and transparent every step of the way.
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Luminate Home Loans, Inc. a wholly owned subsidiary of Luminate Bank
NOTICE TO TEXAS CONSMERS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”